One Year On: How Has Labour Impacted the Lettings Market?

It’s been just over a year since Labour formed the new government in July 2024, ending 14 years of Conservative rule. Among their top priorities? Fixing the housing crisis.

Labour entered office with bold pledges: boost affordable housing, improve tenants’ rights, and accelerate progress toward net zero. But one year in, what’s actually changed for landlords, tenants, and the private rented sector?

 Here’s a look at what’s been done so far and what’s still in progress.

Planning Reforms: A Step Forward

Labour promised a “blitz of planning reform” to speed up development, and they’ve taken steps to deliver.

In March 2025, the Planning and Infrastructure Bill was introduced in Parliament and is now moving through the House of Lords. It's designed to cut red tape and make it easier to build new homes both to buy and rent.

Rental Reform: The Big One

This is where we've seen the most movement.

The Renters’ Rights Bill (RRB) was introduced in September 2024 and has progressed swiftly through Parliament. While many provisions are familiar from previous legislation, Labour’s version goes further in strengthening tenant protections.

Here's what you need to know:

• Section 21 “no-fault” evictions remain—for now. Labour had vowed to abolish them on day one, but they’re still in place while the Bill continues its passage through Parliament.

• New rules around pets: Landlords will not be able to require tenants with pets to take out specific pet insurance or contribute to the landlord’s policy. This is a change from earlier drafts and something landlords should prepare for.

• Rent increase challenges: If a tenant disputes a rent increase and loses, the Bill now includes a clause that could allow rent increases to be backdated. This provision had been removed in earlier drafts but has now been reintroduced a small win for landlords.

• Decent Homes Standard to apply to the private rental sector: A consultation is currently underway following a review of the current standards. More regulation may be coming, particularly around property condition.

Leasehold Reform: Early Steps Taken

Labour committed to abolishing leasehold and introducing a commonhold system but that’s still a work in progress.

So far, we’ve seen incremental changes:

• From January 2025: Leaseholders can now extend their lease or buy the freehold immediately after purchase no more two-year wait.

• From March 2025: Leaseholders of flats now have the right to take over building management without landlord approval. After serving notice and a short handover period, management transfers without legal fees owed to the freeholder.

Labour has also published a white paper outlining its plans for commonhold, with a full Bill expected later in the year.

Housebuilding: Ambitious Plans, Slow Start

Labour promised to deliver 1.5 million new homes over five years (that’s 300,000 a year). But the numbers so far aren’t promising.

In Labour’s first six months, new home completions were down 10% compared to the same period the year before. Around 107,000 homes were built in the second half of 2024—well below the target.

That said, the government has launched a £39 billion Social and Affordable Homes Programme, the biggest grant funding boost in a generation. 60% of homes under this scheme will be for social rent, with the rest available under shared ownership and affordable rent models.

So, What Does It All Mean for Landlords and Tenants?

At I Am The Agent, we’re keeping a close eye on how these changes impact our landlords, tenants, and property investors.

The Renters’ Rights Bill is the one to watch it’s expected to pass into law by the end of 2025, but implementation will be gradual. Landlords should start preparing for changes around tenant rights, pets, rent challenges, and minimum standards.

Meanwhile, leaseholders may begin to see more flexibility and control over their properties, and tenants can expect improved protection and quality standards down the line.

As always, we’ll continue to monitor developments and provide updates, ensuring our clients stay informed and supported through every change.