6 Trends Landlords Need To Be Aware Of In 2025

Enter 2025 with the knowledge you need to navigate the rental market like a pro.

1. Rental inflation moderation

The average private rent in Great Britain, as of November 2024, was £1,319 per month. Over 40% increase since January 2015, when the average private rent was 918 per month^1.

Rental inflation is expected to slow down to an average of 3-4% for new lets. This is due to affordability constraints, as renters' budgets are beginning to limit how much rents can rise. While this may impact rental income growth, it also means that rental properties remain accessible to a broader range of tenants.

2. High demand in limited stock areas

Despite the slowdown in rental inflation, high demand persists, especially in regions with limited rental stock. Landlords with well-maintained properties in these areas are therefore likely to benefit from stable rental yields, making it essential for properties to be kept in top condition to attract and retain tenants.

3. Sustainable and energy-efficient properties

There is a growing interest in energy-efficient homes among tenants. Landlords are encouraged to modernise their properties to meet these demands.

This includes improving energy performance standards, which may become a requirement in the future. If the proposals go ahead, homes available for rent will need to obtain an Energy Performance Certificate (EPC) rating of C by the year 2030².

As a landlord, investing in sustainability can also lead to long-term cost savings and attract more environmentally conscious tenants.

4. Legislative changes with the Renters' Rights Bill

The anticipated Renters' Rights Bill (RRB) is edging closer to becoming law after taking another step forward on 14 January 2025³. The bill introduces an element of uncertainty for landlords, with proposed changes to tenancy agreements (including the removal of Section 21 of the Housing Act 1988, the end of ‘rental bidding’, the introduction of a landlord register, and a new ombudsman service amongst other changes). Landlords will need to stay informed about these changes and ensure compliance to avoid legal issues.

5. Strategic portfolio adjustments

Strategic planning and flexibility will be key to navigating the changing market. Many landlords are adjusting their portfolios to align with evolving tenant preferences and potential new regulations. This includes selling properties that no longer meet market demands and investing in those that offer better returns and tenant satisfaction.

For landlords in England and Northern Ireland, the rise in stamp duty rates which was announced in the Autumn Budget is also likely to impact this.

6. Focus on tenant experience

Giving tenants a positive experience is crucial for retention and reducing your turnover costs. This includes responsive property management, timely maintenance, and clear communication.

Landlords who prioritise tenant satisfaction are likely to see higher tenant retention rates and positive word-of-mouth referrals. Not only that, but tenants who have a good relationship with their landlord are more likely to look after the property and be timely with rent payments.

Landlord insurance from Towergate

We provide landlord insurance for a wide range of properties and tenants, including multi occupancy, students, local authority placements, unoccupied, and much more.
For more information, visit our dedicated landlord insurance page or call us on 0330 828 1709.

Sources

About the author

Alison Wild Bcom Hons FMAAT MATT Taxation Technician Commercial Tax Pensions Insurance And Marketing Specialist Author Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a fellow member of the Association of Accounting Technicians (AAT) and member of Association of Tax Technicians (ATT). She also has over 25 years' experience as a residential landlord.

This is a marketing article by Towergate Insurance. Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.