Tricks, Treats and Tenancy Reforms: UK Rental Market Update (30 October 2025)

Today's UK rental market update shows landmark reforms have taken shape with the Renters’ Rights Act gaining Royal Assent, setting the stage for major changes in the private rented sector. At the same time, new data from Rightmove points to a deepening rental supply shortage, while government plans to reduce London’s affordable housing quotas, marking a shift towards prioritising delivery over affordability. These developments highlight a sector in transition, one defined by tightening regulation, shifting market dynamics and rising expectations for transparency and compliance. Landlords and agents need to be proactive about their procedures to get ahead of incoming legislation and avoid the new penalties for non-compliance.

The Top Headlines

1) Landmark Renters’ Rights Act receives Royal Assent
The Renters’ Rights Act has been given Royal Assent, officially transforming key elements of the private rented sector. Although the Act is now law, the government has yet to announce a definitive timeline for the measures to be rolled out. Landlords and agents are advised to prepare now and factor in transitional issues for existing tenancies. Source

2) Chancellor admits renting out home without required licence
Rachel Reeves said she let her family home in Southwark without obtaining the borough’s selective landlord licence, apologised, and notified ethics advisers. Her admission puts renewed attention on council licensing regimes and compliance obligations for private landlords. Source

3) Rightmove: Rental supply crisis deepens as reforms loom
Rightmove’s latest Rental Trends Report shows new rental listings up by just 1% from last year - the lowest figure recorded in 2025 - while total available stock remains 23% below pre-pandemic levels. The slowdown reflects the combined impact of the Renters’ Rights Act with uncertainty ahead of the Autumn Budget. Overall, this raises concerns that the rental market could face supply shortages as major reforms take effect. Source

4) Ministers confirm plans to reduce London’s affordable-housing quotas
In an attempt to fast-track planning approval, the UK Government and the Greater London Authority led by Sadiq Khan, have agreed a temporary shift in London’s planning rules. Now allowing developers to deliver just 20% affordable housing, down from the previous 35% target, signalling a key shift in London housing strategy. Steve Reed, the housing secretary, said in a statement: “Getting spades in the ground in London is crucial if we want to see the biggest increase in social and affordable housing and meet our target of delivering 1.5m homes." Source

5) Awaab’s Law: phased enforcement timetable confirmed
Government guidance reiterates that from 27 October 2025 social landlords must meet strict deadlines for damp, mould and emergency hazards, with further hazards phased in thereafter. Consequences for non-compliance include contractual liabilities and potential court action. These new timeframes are set to take effect in the private rented sector following the Renters' Rights Act. Source

Landlords and agents: Act now to review compliance processes, prepare for new tenancy rules, and strengthen documentation before the next phase of reform takes effect. Stay ahead by updating your systems, seeking legal guidance, and prepare for a more accountable rental landscape.

If compliance is on your agenda, contact LightWork AI to see how we can help, or book a demo today.