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Published: 15 July 2025

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Expectations of a base rate cut have increased following poorer-than-expected GDP figures were released over the weekend.

The economy contracted by 0.1%, the Office for National Statistics says, after also shrinking in April. Construction, manufacturing and in particular retail sales were described by the office as “very weak”. For the April to June period, the UK economy is now forecast to show combined growth of 0.1% to 0.2%.

The data now adds to expectations the Bank of England will cut interest rates next month.

“The lack of momentum in the UK economy indicated by these sluggish figures means that an August interest rate cut currently looks inevitable, despite the recent spike in inflation” says Suren Thiru, economics director at accountancy body ICAEW.

Lindsay James, investment strategist at Quilter, comments that recent U-turns on welfare cuts by  Chancellor Rachel Reeves means a “spotlight has been well and truly shone on the UK economy in the past week or so”.

Reeves herself says: “Getting more money in people’s pockets is my number one mission. While today’s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.

“The choices we have made in our first year in government have seen us extend the £3 bus fare cap, fund Free School Meals for over half a million more children, press ahead with plans to deliver free breakfast clubs for every child in the country and increase the National Minimum and National Living Wage, giving a pay rise to 3m workers.

“There’s more to do, that’s why in the Spending Review we boosted investment and jobs, through better city region transport and record funding for affordable homes, as well as backing major projects like Sizewell C.”

The Bank of England’s next rate decision will be on August 7

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Published: 03 July 2025

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"When the Bill becomes law, the notice period for common grounds such as sale or landlord occupation will increase to four months. Landlords will also face a new restriction: these grounds cannot be used within the first twelve months of a tenancy. This means a tenant is effectively protected from eviction for the first year, unless there is a serious breach of contract."
- Allison Thompson - LRG

As the Renters’ Rights Bill continues its progress through the House of Lords, landlords should be preparing for a much tighter framework around possession. One of the most significant changes proposed is the reform of Section 8, the legal route for regaining possession where a specific reason applies.

Section 21 is being abolished. In its place, Section 8 will become the standard mechanism for eviction, with new rules that introduce longer notice periods, stricter evidential requirements, and mandatory court involvement in most cases.

Understanding Section 8

Section 8 allows landlords to seek possession on either mandatory or discretionary grounds. Mandatory grounds include cases where the landlord intends to sell, move in, or where the tenant is in serious rent arrears. Discretionary grounds include antisocial behaviour, property damage, or other breaches of the tenancy agreement.

The proposed legislation does not remove these grounds but significantly changes the timelines and conditions around how and when they can be used.

Key changes landlords should prepare for

When the Bill becomes law, the notice period for common grounds such as sale or landlord occupation will increase to four months. Landlords will also face a new restriction: these grounds cannot be used within the first twelve months of a tenancy. This means a tenant is effectively protected from eviction for the first year, unless there is a serious breach of contract.

Landlords who seek possession in order to sell will also be subject to a further condition. Once notice is served and the four-month period has passed, the landlord will not be able to re-let the property for twelve months. During that time, the property cannot be marketed for rent or used as a holiday let or under a licence. The total restriction period is sixteen months from the point notice is given.

For rent arrears, the threshold will increase. Tenants must be at least three months in arrears before a Section 8 notice can be served. The notice period itself will increase from two to four weeks. In practice, this means landlords are likely to lose at least four months of rental income before they are able to begin the possession process.

The only exception to these longer timeframes is in cases of antisocial behaviour. Where this can be evidenced, landlords will be able to begin proceedings immediately.

What this means for landlords

The removal of Section 21 and the reforms to Section 8 represent a shift towards a more regulated and court-led approach. Every eviction will now need to be justified with clear evidence. In contested cases, a hearing will be required, which means higher legal costs and longer delays.

Landlords relying on sale as a reason to end a tenancy will need to plan carefully. If their circumstances change or the property does not sell, it may still have to sit vacant until the full restriction period has passed.

Longer notice periods will also increase financial exposure. In most cases, landlords will need to wait several months before regaining possession, potentially without rental income and with additional court costs.

At LRG, we are supporting landlords to review their property plans and tenancy management strategies. Early preparation is essential to avoid disputes and ensure compliance when the new law comes into force.

What this means for tenants

Tenants will benefit from more time and stronger legal protections. In most cases, they will have at least four months to respond if a landlord seeks possession. This gives them a better opportunity to resolve issues, make up arrears, or find a new home.

The proposed reforms also introduce clearer safeguards against unfair evictions. Landlords will need to prove their case, and tenants will have the right to challenge claims in court. At the same time, those involved in antisocial behaviour may face faster legal consequences, as landlords will no longer need to wait before taking action.

How landlords can prepare

Although the Renters’ Rights Bill is still being debated, it is sensible to prepare now. We recommend landlords:

·         Carry out stronger affordability checks before offering a tenancy

·         Keep accurate written records of communication and property condition

·         Review the Section 8 grounds and understand the new timelines

·         Check whether rent protection insurance includes cover for legal expenses

·         Work with an experienced managing agent to stay up to date and compliant

Good record keeping and proactive management will go a long way in reducing risk once the new system is in place.

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Published: 01 July 2025

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The Renters’ Rights Bill returns to the House of Lords today for the first of three Report stage debates.

Further sittings of the Bill, which recently completed its Committee Stage in the House of Lords, are schedules for the 7 and 15 July, but it looks increasingly unlikely that the bill will receive Royal Assent ahead of the summer recess, which will run from 22 July to 1 September.

Consequently, the Bill will likely become law in September, with implementation expected to begin towards the end of this year or the start of 2026.

Report stage is one of the final opportunities for peers to debate and secure changes to the bill and we have been stepping up our interaction with peers to highlight what we believe are key issues with the proposed legislation.

Steven Bond, managing director of residential lettings at Beresfords, commented: “Letting agents and landlords must prepare to comply fully with the new requirements once the bill is enacted. We are advising landlords to begin reviewing their existing tenancy agreements, stay informed on the bill’s progress, and seek professional advice where necessary to ensure they remain compliant and well-prepared.

“This is one of the biggest shifts we’ve seen in the rental sector for years, and while there’s still some uncertainty, landlords who take steps now to understand and prepare for the changes will be in a far stronger when the legislation finally comes into effect.”

Calum MacInnes, chair at Student Accredited Private Rental Sector, is concerned about the potential impact the new legislation will have on the student rental sector.

MacInnes said: “The Renters’ Rights Bill is now approaching its final stages where much-needed amendments can still be made to this Bill. We have been campaigning throughout its entire legislative journey, and to this day the government is unable to provide a clear rationale for the fixed-term tenancy ban on private student housing.

“While we agree that there is much to be applauded in this Bill, it falls short when considering its impact on the student rental market. The proposed changes will only exacerbate what is a crisis in the availability and affordability of student housing, with students being the group that suffer. We are urging the government to reconsider the proposals before it’s too late.”

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Published: 23 June 2025

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Major private rental sector reforms may be unworkable unless the Government urgently addresses fundamental questions, according to a coalition of industry organisations representing landlords, build-to-rent providers, and letting agents.

Ahead of the Renters’ Rights Bill returning to the House of Lords on 1 July, the British Property Federation, the National Residential Landlords Association (NRLA), and The Lettings Industry Council have written to Baroness Taylor of Stevenage warning of critical gaps in Government planning and transparency.

Despite repeated ministerial assurances that “good landlords” should have nothing to fear from the reforms, the groups say outstanding issues continue to generate concern and uncertainty across the sector.

Key among these is the unresolved question of court readiness. Although ministers promised last year to ensure courts could manage the Bill’s impact—particularly regarding possession claims—no detail has been given on what this preparation entails or how long landlords can expect to wait for hearings. With delays already widespread in the system, many landlords fear a breakdown in enforcement processes.

The industry bodies also argue that proposals to allow tenants to challenge rent increases through tribunals are unworkable, citing the absence of a consistent, reliable national dataset for market rents. Without a transparent benchmark, assessing whether a proposed rent rise exceeds local market rates will be inherently flawed.

Additional confusion surrounds the government's plans to make it harder for landlords to evict tenants in arrears caused by delayed benefit payments. Currently, landlords are not notified when a tenant begins claiming benefits, making it impossible to verify if missed payments are due to bureaucratic delays unless a court case is already underway.

Finally, the organisations note that ministers have yet to provide a clear implementation timeline for the new tenancy rules once the Bill passes. They warn that without clarity, a smooth transition to the new legal framework will be impossible for both landlords and letting agents.

In a joint statement, Ben Beadle (CEO of the NRLA), Melanie Leech (CEO of the British Property Federation), and Theresa Wallace (Chair of The Lettings Industry Council), said:

“We remain extremely disappointed by the lack of substantive responses to the concerns we have consistently raised with ministers.

"We want the Bill to work in practice and enjoy the confidence of good landlords. However, unless clear answers to the issues we have raised are forthcoming from the Government, those very landlords have every reason to be concerned.”