What is a Guaranteed Rent Scheme and Is It Right for You?
November 2, 2024
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TL;DR
New HMO licensing laws, stricter fire and safety rules, and incoming energy efficiency reforms are reshaping property investment in 2025. This blog covers everything HMO landlords must know to stay compliant, avoid penalties, and future-proof their rental income—especially in West Yorkshire.
What’s in This Article:
National HMO Law Changes in 2025
1. Renters’ Rights Bill (2025 Launch)
- No-fault evictions (Section 21) are being abolished.
- All tenants will have default rights to keep pets.
- “Awaab’s Law” included: stricter timelines for fixing damp and mould.
- Expected to fully roll out in mid to late 2025.
Impact for HMO Landlords: You’ll need to update tenancy agreements and respond to repairs faster than ever before.
2. Selective Licensing Reform
As of December 2024:
- Councils no longer need government approval to introduce large licensing schemes.
- Expect more borough-wide and district-wide licensing in 2025.
3. EPC Reform Proposals
- All HMOs (even room lets) may soon require an EPC.
- Target EPC rating: Band C by 2025/2026 for new tenancies.
- Full compliance for all by 2028.
Landlords must act promptly to meet EPC and MEES (Minimum Energy Efficiency Standards) requirements.
Rise of Local Licensing Schemes
2025 is a record year for licensing expansion. Many councils are introducing:
- Selective Licensing (all rentals in a geographic area).
- Additional Licensing (for smaller 3–4 person HMOs).
Examples:
- Barking & Dagenham: All rental properties licensed from April 2025.
- Blackpool: Over 20% of the town now requires licences.
- Lambeth: Borough-wide scheme by July 2025.
Penalties for Non-Compliance:
- Up to £30,000 civil fines
- Rent Repayment Orders for 12 months
- Criminal prosecutions for serious breaches
HMO Regulation Updates in West Yorkshire
Leeds
- Former selective licensing in Beeston/Harehills expired Jan 2025.
- Council is consulting on a new 15-area scheme.
- Proposed fee: £1100 for 5 years (was £825).
Action for landlords: Prepare for launch in Autumn 2025.
Bradford
- No citywide scheme yet but growing HMO market.
- Recent £47,000 fine issued for disrepair and fire safety breaches.
- Bradford is now UK’s HMO capital in demand.
Action for landlords: Stay compliant. Watch for council movement on licensing.
Other Areas (Wakefield, Calderdale, Kirklees)
- Mandatory 5+ bed HMO licensing still applies.
- Watch for Article 4 restrictions (planning permission needed for HMOs).
Key Compliance Rules Landlords Must Follow
1. Fire & Safety Standards
- Working smoke and heat detectors.
- Proper fire doors and exits.
- Annual fire risk assessments.
2. Electrical & Gas Safety
- EICR every 5 years (2020 reports now due for renewal).
- Gas Safety Checks are conducted annually.
3. Bedroom Size Minimums
- Single adult: 6.51 m²
- Two adults sharing: 10.22 m²
4. HHSRS Inspections
- Councils will inspect every 5 years.
- Fix all Category 1 Hazards (damp, mould, cold, etc.).
Energy Efficiency: EPC and MEES Reforms
What’s Changing
- EPC required for all HMOs, not just whole-house lets.
- Band C minimum rating likely to be enforced by 2025/26.
- 2025 focus on fuel poverty, heating costs, and thermal comfort.
Tips:
- Upgrade to smart heating.
- Install insulation.
- Replace old boilers.
What HMO Landlords Should Do Now
1. Check Licensing Requirements
- Use tools like NRLA or Kamma to see if your area is covered.
2. Update All Safety Certificates
Renew EICR, gas certs, and check all alarms.
3. Inspect & Upgrade
Fix damp, upgrade fire doors, and review energy use.
4. Prepare for EPC Reforms
- Book an EPC assessment.
- Start improving now (double glazing, heating, LED).
5. Follow Council Updates
- Leeds: Look out for licensing scheme announcement.
- Bradford: Expect increased inspections.
FAQs About Guaranteed Rent for Landlords
Our leases typically last between 3 to 5 years, offering landlords long-term stability.
Even if your property is vacant, you will still receive guaranteed rent payments.
Yes, you can sell your property at any time, but your guaranteed rent payments will continue until the end of the lease agreement.
Contact us for a free property assessment and see how our guaranteed rent scheme can benefit your Bradford property.
How to Get Started with Citywide Housing Group
2025 is not the year to get caught off guard. With more councils introducing licensing, EPC reform around the corner, and national tenancy changes underway, HMO landlords must be proactive.
Citywide Housing Group is here to help. We work with landlords across West Yorkshire, helping them stay compliant and earn consistent rental income with no voids or tenant stress.
If you’re ready to secure fixed, reliable income with no voids or arrears, it’s time to join the growing number of landlords in Bradford benefiting from guaranteed rent schemes.
Contact Citywide Housing Group today to schedule your free property assessment and discover how we can help you unlock the potential of your property.
For more information, visit Citywide Housing or call us at 0113 323 0678.
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