As the UK rental market continues to evolve, new legislation introduced in May 2025, alongside major reforms arriving this October, is reshaping the responsibilities and expectations placed on letting agents. Below is a clear breakdown of what’s already in effect and what’s still to come, plus what it all means for your business.

What Changed in May 2025

Mandatory Sanctions Checks (Effective 14 May 2025)

Letting agents are now legally required to carry out sanctions checks on all individuals involved in a tenancy. This includes landlords, tenants, guarantors, and adult occupiers.

Key requirements:

• Sanctions List Screening: All parties must be checked against the UK sanctions list.
• Immediate Reporting: If there’s a match or suspicion, you must report it to the Office of Financial Sanctions Implementation (OFSI) and freeze any assets.
• Record-Keeping: Documentation of all checks must be securely stored and available for audit.

These rules carry severe penalties for non-compliance and are now a mandatory part of tenant referencing processes.

What’s Coming in October 2025

The Renters’ Rights Bill, scheduled to come into force later this year, marks one of the most substantial reforms in the private rental sector in recent decades.

Key upcoming changes:

• Abolition of Section 21 ‘No-Fault’ Evictions

  Landlords will need to provide valid grounds (under Section 8) to regain possession of a property.

• All Tenancies to Become Periodic

  Fixed-term tenancies will automatically convert into periodic agreements, with tenants able to leave by giving two months’ notice at any time.

• Restrictions on Rent Increases

  Rent can only be increased once per year and must reflect market rates. Tenants can challenge increases through a formal process.

• Ban on Rental Bidding Wars

  Landlords and agents may not accept offers above the listed rent price.

• New Ombudsman and Landlord Register

  A national landlord register and an independent ombudsman will be introduced to increase accountability and resolve disputes.

• Decent Homes Standard & Awaab’s Law

  Rental homes will need to meet a clear quality standard, with urgent repairs addressed in specific timeframes.

• Anti-Discrimination Rules

  Agents and landlords must not reject tenants based on their receipt of benefits or family status.

What This Means for Estate and Letting Agents

Both the May and October changes significantly increase agents’ legal obligations, requiring better systems, tighter procedures, and more transparency.

Here’s how agents may be affected:

• Stricter Compliance Protocols

  Every tenancy must now go through comprehensive pre-checks (including sanctions), and records must be kept in accordance with regulatory standards.

• Operational Process Reviews

  Current procedures, especially around evictions, renewals, and rent changes, may need to be updated to reflect the transition to periodic tenancies and the loss of Section 21.

• Stronger Risk Management

  With increased legal scrutiny and potential fines, agents need to take extra care when dealing with landlords who may not yet be fully aware of these legislative updates.

• Clearer Communication with Landlords and Tenants

  Agents are likely to act as the bridge between new legal requirements and their clients, meaning your knowledge and guidance will be more valuable than ever.

Need Help Navigating These Changes?

If you're unsure how this affects your agency or want to review your current setup:

• Reach out to your account manager Or book a 1-to-1 session via your CRM dashboard

  We’re here to support you every step of the way and ensure your agency remains compliant, efficient, and fully prepared.