UK Property Trends

What UK Property Policy Changes in 2025 Mean for Landlords and Investors

UK Property Trends

What UK Property Policy Changes in 2025 Mean for Landlords and Investors


The UK Property Landscape Is Shifting — Fast



If you’re a landlord or thinking of becoming one, 2025 is not the year to bury your head in the sand. New housing policies, local authority crackdowns, and taxation shifts are changing the rules for everyone — especially buy-to-let landlords and short-let property owners.


Whether you’re holding one flat or a growing portfolio, ignoring these changes could cost you thousands or worse — leave you non-compliant.




1. Renters (Reform) Bill: What’s Happening Now



The Renters (Reform) Bill — originally introduced in 2023 — is expected to become law by late 2025. It includes some of the most significant changes in decades:


  • Section 21 (“no fault” evictions) will be abolished

  • All tenancies will move to periodic agreements, ending fixed terms

  • Tenants will get more power to challenge unfair rent increases

  • A new Private Rented Sector Ombudsman will be introduced



What this means for landlords:


  • You’ll need stronger tenant management and documentation

  • Removing problematic tenants will become harder and slower

  • Letting strategies that rely on short fixed-term cycles may no longer work



Source: UK Parliament – Renters (Reform) Bill Progress




2. Short-Term Let Regulation: Local Councils Are Cracking Down



Following pressure from housing campaigners and residents, the government introduced a mandatory registration scheme for short-term lets in England, due to roll out nationwide by mid-2025.


Councils like Westminster, York, and parts of Cornwall have already begun introducing licensing zones, while London remains subject to the 90-day rule unless planning permission is granted.


Key changes in 2025:


  • New use class for short-lets: Switching to short-let may now require planning permission

  • Mandatory registration in all English regions (previously only localised)

  • Greater enforcement powers for councils to fine or shut down non-compliant properties



Source: Gov.uk – Short-Term Let Review Update, March 2024




3. Capital Gains Tax & Mortgage Interest Relief



No new cuts to Capital Gains Tax have been announced for 2025, but recent years have already reduced the annual exemption to £3,000, down from £12,300 in 2022.


Landlords are still unable to deduct full mortgage interest from rental income. Instead, they receive a 20% tax credit — a rule that remains unchanged in 2025, but continues to squeeze profit margins for higher-rate taxpayers.


Source: HMRC – Property Income and CGT 2025




4. EPC Upgrades Delayed — But Still Coming



The government scrapped the original 2025 deadline for requiring EPC rating C or above for new tenancies — but a new timeline is expected to be announced in Q4 2025.


Most councils and housing associations are still moving towards EPC C targets, and funding support is available in some regions.


What landlords should do now:


  • Get an EPC assessment to know where you stand

  • Budget for upgrades like insulation, boiler replacement, or smart heating

  • Future-proof now before grants vanish or prices rise



Source: Department for Energy Security and Net Zero




What All This Means for Landlords in 2025



The days of hands-off property investing are fading.

To stay profitable and compliant, landlords now need:


  • A clear letting strategy that accounts for legal changes

  • Better property management and record keeping

  • A trusted agency that can adapt to shifting rules fast





How StoneGrove Helps You Stay Ahead



We don’t just find tenants and collect rent. At StoneGrove, we:


  • Help landlords navigate new policies with clarity and zero jargon

  • Monitor legal changes and update your strategy as needed

  • Offer alternative routes like corporate lets and social housing schemes

  • Keep you compliant, profitable, and stress-free





Call to Action: Need to Reassess Your Property Strategy for 2025?



Speak with our lettings & legal compliance team at StoneGrove. We’ll review your current setup, flag any risks, and help you plan for the next 12 months — no pressure, no nonsense.


👉 [Book My 2025 Property Check] or call us on [StoneGrove phone number]

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