<p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1750311984/RRB_JLL_updates_Chinese_April_2025.pdf" target="_blank"><button class="Button primary">Download Mandarin Version (点击获取中文版)</button></a>
</p><p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1738843174/resi/gb/Articles/PDFs/RRB_JLL_updates_Arabic_Feb_5_JLL.pdf" target="_blank"><button class="Button primary">Download Arabic  Version</button></a>
</p><p>The Renters&rsquo; Rights Bill (RRB) proposes significant reform within the private rental sector. The bill itself has been making fast progress through Parliament, having already passed through the House of Commons. It is now widely expected to come
    into effect from this<em> </em>spring onwards.&nbsp; </p><p>Whilst the bill contains added flexibility to tenants, Landlords retain much needed protection around possession and annual rental increases. The bill is intended to even the balance and is expected to encourage greater long-term security for both Tenants
    and Landlords. Key parts of the bill include;</p><ul><li>The abolishment of Section 21 notices, and the ending of Assured Shorthold Tenancies (ASTs).</li></ul><ul><li>Tenancies to become periodic by default, and Tenants can serve 2 months&rsquo; notice at any time. </li></ul><ul><li>Rent payment/collection limited to one month in advance.</li></ul><ul><li>Rent increases to be restricted to once per year (twelve months from previous increase) via a Section 13 notice.</li></ul><ul><li>Tenants can challenge rent increases deemed above market via the First Tier Tribunal.</li></ul><ul><li>Rent agreed cannot be higher than the advertised property price. <s></s></li></ul><ul><li>Tenants have the right to request a pet and that request cannot be unreasonably refused. </li></ul><ul><li>Landlords will be prohibited from discriminating against tenants who receive benefits or have children residing with them or visiting their premises.</li></ul><ul><li>Awaab&rsquo;s Law will apply to the Private Rented Sector (PRS) rather than in social housing only. </li></ul><ul><li>Decent Homes Standard will also apply to the PRS. </li></ul><ul><li>There will be a requirement for Landlords to sign up to a Landlord Redress Scheme as well as a PRS database. </li></ul><ul><li>A written tenancy agreement will need to be provided to all Tenants.
        <p>As your trusted letting agent, JLL are already taking steps to prepare for this upcoming change and have successfully guided thousands of clients through previous legislative changes, most recently the Tenant Fees Act (2019). We will work with
            you, endeavouring to ensure that your needs are met and minimise any concerns following the introduction of the upcoming changes. <s>&nbsp;</s></p><p>Below is the current timeline and summary of key changes that are expected to take effect. We have also answered some of the key questions that our clients and partners have been asking.&nbsp;<span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;word-spacing:normal;caret-color:auto;white-space:inherit;"></span></p></li></ul><div style="text-align:center;"><p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1750783186/resi/gb/Articles/Images/RRB_-_progression_chart_-_Jun.png" /></p><p>&nbsp;</p></div><p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1750783032/resi/gb/Articles/PDFs/RRB_JLL_updates_Jun_Chinese.pdf" target="_blank"><button class="Button primary">Download Mandarin Version (点击获取中文版)</button></a>
</p><p><a href="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1750783032/resi/gb/Articles/PDFs/RRB_JLL_updates_Jun_Arabic.pdf" target="_blank"><button class="Button primary">Download Arabic  Version</button></a>
</p><h2></h2><h2><strong>WILL IT AFFECT ALL RENTAL PROPERTIES?</strong><strong></strong></h2><p>The vast majority yes. Most Landlords rent to individuals and receive a rent of under &pound;100,000 per year making their tenancy an Assured Shorthold (AST), so these changes will apply to most Landlords in England. Landlords renting to company Tenants
    or receiving rent exceeding &pound;100,000 per year will continue to be exempt as the bill will not apply to company or contractual (Non AST) tenancies.</p><h2><strong>WHEN WILL THIS TAKE EFFECT?</strong><strong></strong></h2><p>Once the bill passes into law, it will apply to new and existing tenancies, defaulting fixed term tenancies to periodic immediately. It should be noted that existing tenancies with clauses for future rent increases and/or break clauses will no longer
    apply as the new legislation takes precedent.</p><h2><strong>HOW LONG CAN MY TENANT(S) STAY IN MY PROPERTY?</strong><strong></strong></h2><p>As above, leases will no longer have a fixed end date and will roll over indefinitely until a valid notice is served by Landlord or a Tenant. Tenants will have a minimum twelve month protected period.</p><h2><strong>WHAT HAPPENS IF I NEED MY PROPERTY BACK?</strong><strong></strong></h2><p>Current Section 21 notices will no longer exist and will be replaced by an existing (evidence based) Section 8 notice framework. Landlords needing to sell or move themselves or their immediate family into a property, can do so under a newly extended notice
    period of four months, which cannot be served until eight months after a Tenant takes occupancy, guaranteeing them one year minimum. Landlords must be prepared, and able, to provide evidence of their need for possession and will be prohibited from
    marketing their property for rent for twelve months from the date the notice expires. These requirements are to ensure notices remain legitimate. How such evidence might be called on or presented remains unclear at this time.</p><h2><strong>BREAKCLAUSES IN GENERAL</strong><strong></strong></h2><p>Tenants will be able to give Landlords two months&rsquo; notice at any point once they have moved in. Whilst not ideal the cost, time, and effort of moving home means few Tenants would have any interest relocating and would be expected to remain much
    as they do now, moving only when circumstance require change so Landlords should not be too concerned here.&nbsp; </p><p>Outside of Landlords wishing to sell or move in, Landlords will be permitted to serve notice should their Tenant breach their rental contract. A list of notices covering breaches can be <a href="https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a">viewed here</a>.</p><h2><strong>RENTAL PAYMENTS AND ARREARS</strong><strong></strong></h2><p>All rent will be payable monthly only. All advance payments will be prohibited. JLLs due diligence and processes ensure 97% of all JLL client rental monies are received within three working days of due date and 99.8% paid within 30 days of any due date.</p><p>Tenant arrears of three months will enable Landlords to serve four weeks&rsquo; notice. </p><h2><strong>WHAT ABOUT STUDENTS AND OVERSEAS TENANTS?</strong><strong></strong></h2><p>The same applies. Despite it being widely accepted that the student market is higher risk, there is no exemption in the bill at present. Landlords are advised to consider rent protection insurance policies or guarantors to offset any risk.</p><h2><strong>ADVERTISING AND INCREASING RENTS</strong><strong></strong></h2><p>When marketing, Landlords will no longer be able to accept a rental offer or bid that exceeds the advertised property price.</p><p>Landlords will be able to propose market rent increases annually using a Section 13 notice, providing two months&rsquo; notice to Tenants. Tenants may challenge the increase via the First-Tier Tribunal Service (FTT), if they feel it exceeds market value.</p><p>The FTT are unable to increase rent beyond the Landlords proposed amount but may rule the same amount (or lower) to determine an impartial market valuation. The increased rent will take affect from the date of the ruling (or a following date set by the
    FTT, typically the next due date). Crucially, it will <em>not</em> be backdated to the Section 13 expiry date. How long a ruling will take is not clear, but reports suggest it could be up to six months. There are concerns this may encourage Tenants
    to challenge increases. Fair market linked increases will reduce Tenants challenging annual increases. </p><h2><strong>PETS</strong></h2><p>Landlords can no longer reasonably refuse pets but can require Tenants to acquire appropriate pet insurance. A Landlords superior lease that prohibits pets might be considered a reasonable reason to refuse for example. &nbsp;</p><h2><strong>PENALTIES AND FINES</strong><strong></strong></h2><p>Up to &pound;7,000 for first time offences and &pound;40,000 for more serious and repeat non-compliance.&nbsp;</p><p>&nbsp;</p>

Renters Rights Bill Update – June 2025

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The Renters&rsquo; Rights Bill (RRB) proposes significant reform within the private rental sector. The bill itself has been making fast progress through Parliament, having already passed through the House of Commons. It is now widely expected to come into effect from this<em>&nbsp;</em>spring onwards.&nbsp;

The Renters’ Rights Bill (RRB) proposes significant reform within the private rental sector. The bill itself has been making fast progress through Parliament, having already passed through the House of Commons. 

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<p>The optimist&rsquo;s view is that this could be short lived though, with Ofgem announcing a 7 per cent reduction in the energy price cap between July and September this year, compared to a 6 per cent rise in the three months to June.&nbsp;</p><p>Higher than expected CPI figures follow news that the UK economy grew by 0.7 per cent in Q1 2025, above the 0.6 per cent forecast and 0.1 per cent recorded in Q4 2024. But policy change, both domestically and internationally, means the path for the remainder
    of 2025 is far from clear, with the impact of employer NI and tariffs still to play out in the GDP figures in the coming months.</p><p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1748531146/resi/gb/Articles/Images/Roundup-May30-Chart1.jpg" /></p><p><strong>Housing market</strong></p><p>The post-stamp duty change hangover appears to have been short lived, with the latest figures from Zoopla showing the number of sales agreed in May at their highest level for four years and up 6% on 2024. Sellers are returning to the market too, with
    new listings up 6% and stock on the market 13% higher than at the same point a year ago. </p><p>The latest ONS figures for March show average UK house prices rose 6.4 per cent annually to &pound;271,000, equating to a &pound;16,000 increase on March 2024. First time buyer prices rose 7.1 per cent, outpacing growth for home movers (5.4 per cent).
    Although it is worth noting the impact of the 1 April stamp duty change on these figures. </p><p>For rents, the ONS Private Rents Index showed an annual increase in rents of 7.4 per cent in the 12 months to April 2025. This is down from 7.7 per cent in March but continues to remain elevated compared with new let indicators, with April figures from
    Homelet up just 0.3 per cent annually.&nbsp;</p><p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1748531146/resi/gb/Articles/Images/Roundup-May30-Chart2.jpg" /></p><p><strong>Time to rethink incentives? </strong></p><p>The government has made clear commitments to building more homes and improving the quality and efficiency of our existing housing stock. However, the responsibility for building this stock lies predominantly with housebuilders, who have responsibilities
    to their shareholders and need to ensure there is a market for any homes they deliver. Whether that be for open market sale, investment, or sales to affordable housing providers. </p><p>The cost to improve existing stock also lies (a few government subsidies aside) with property owners. Whether that be housing associations or other social housing providers, who need to improve stock without any demonstrable increase in rents, or owners
    in the private sector.</p><p>The government has clear ambitions to achieve a blanket EPC C+ rating for the private rented sector and social housing, but if we are serious about encouraging and rewarding improvements, we&rsquo;ll need to rethink how we approach this going forward.
    </p><p>New homes are already a step ahead, with 97% of new homes delivered having an EPC of C or above, with 86% rated A or B in Q1 2025.&nbsp; This compares with 6% EPC A or B and 52% EPC C for existing homes. </p><p>To encourage purchasers to buy new and more energy efficient homes, or to reward homeowners for investing in improving the energy efficiency of their homes should we be offering Stamp Duty Land Tax (SDLT) incentives to encourage activity and improvements?</p><p>Cutting SDLT by 50% for A or B rated properties, and by 25% for those rated C could provide a clear incentive for buyers and rewards sellers too. Those bringing homes to market at EPC C or above may be more likely to attract buyers due to lower running
    costs and reduced purchase costs. </p><p><strong>What difference could this make? </strong></p><p>If implemented, a first-time buyer purchasing a home at &pound;500,000 could save &pound;5,000 buying an EPC A or B rated home, with home-movers paying &pound;7,500, compared with &pound;15,000 for a home rated D or below. Perhaps a harder sell for government
    would be applying this to investors too, but if we are looking to improve the quality and efficiency of our rental stock offering the same reduction in SDLT would further encourage the purchase of more efficient homes. An investor buying a &pound;500,000
    EPC A or B rated property would still be paying four times the SDLT of a first-time buyer, but saving &pound;20,000 compared with an EPC D home.&nbsp;</p><p><img src="https://res.cloudinary.com/global-cms-assets-np/image/upload/v1748531146/resi/gb/Articles/Images/Roundup-May30-Chart3.jpg" /></p><p><strong>But what about the black hole? </strong></p><p>We understand that discussions on tax breaks at a time when government finances are increasingly stretched could be challenging.&nbsp; However, even if stamp duty take per property fell, more activity means the difference between overall receipts may not be as significant. Indeed, encouraging activity in the housing market brings in far more revenue than SDLT alone, providing a boost for the wider economy as well as helping to deliver more better-quality homes. We&rsquo;ll hopefully know more following the June Spending Review, but in the meantime, we hope that the Government are considering demand and as well as supply when thinking about how to deliver more homes.</p><p><strong>JLL Research</strong></p><p>JLL&rsquo;s Residential and Living team consists of over 300 professionals who provide a comprehensive end-to-end service across all residential property types, including social housing, private residential, build to rent, co-living, later living, healthcare and student housing. </p><p>Disclaimer: &copy; 2025 Jones Lang LaSalle IP, Inc. All rights reserved. Data within this report is based on material/sources that are deemed to be reliable and has not been independently verified by JLL. JLL makes no representations or warranties as to the accuracy, completeness or suitability of the whole or any part of the report which has been produced solely as a general guide and does not constitute advice. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of JLL. JLL, its officers, employees shall not be liable for any loss, liability, damage or expense arising directly or indirectly from any use or disclosure of or reliance on such report. JLL reserves the right to pursue criminal and civil action for any unauthorized use, distribution or breach of such intellectual property.</p>

Residential Roundup - 30 May

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Discover the latest market insights from Marcus Dixon in this week's Residential Roundup

<p><strong>UK inflation, which had been coming in below forecast earlier this year, spiked according to the latest April figures. This wasn&rsquo;t unexpected, with the impact of higher energy costs alongside annual increases in council tax and rail fares contributing to the 3.5 per cent rise. </strong></p>

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Prime Central London Report - Q1 2025

The JLL Q1 2025 Prime Central London Report tracks activity across the central London housing market. The report incorporates the results of our quarterly JLL Prime Central London Index.

<p>The JLL Q1 2025 Prime Central London Report tracks activity across the central London housing market. The report incorporates the results of our quarterly JLL Prime Central London Index.</p>

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Unpacking the Renters Reform Bill: Key Insights for Landlords and Tenants

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<p>Discover key insights on the UK's Renters Reform Bill from JLL's Lucy Morton. Learn how changes in fixed-term tenancies, rent increases, evictions, and more will impact landlords and tenants. Essential reading for anyone in the private rental sector.</p>

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