If you are a little nervous about business success as a private landlord in 2025, we hear you. Imminent legislation reviews mean that 2025 will be a year of change and that can be unnerving. But by being prepared and proactive you can still ensure success this year and beyond. Here are our top tips to help.
Keep an eye on the news for legislation change
Legislative change will come thick and fast this year so keep an eye on the property news – and blogs like this – to understand how those changes will affect you. This will include updates on the Renters’ Rights Bill which, with amendments, passed its third reading in the Commons and progressed to the House of Lords.
Other changes, such as revisions to the Energy Performance Certificate, are still ongoing. A consultation into plans to raise ratings to C by 2030 ends in February.
Prove you are proactive
Tenants may be aware of some of the imminent changes, such as the ability to have pets more easily in a rental property. Others, such as revised energy efficiency requirements, may not be on their radar. However, energy efficiency is a great selling point since it helps tenants reduce costs and their environmental impact. Implementing the required changes and marketing your compliance early can improve your appeal by proving you are a proactive and engaged landlord.
Budget carefully to control costs
Although inflation is slowing, costs are still rising even before your additional compliance responsibilities. Keep on top of your day-to-day rental property budget to ensure you don’t overspend. Rents will continue to rise to cover some of those increased costs, having already grown by 9% in the 12 months to December 2024, according to the latest figures from the ONS. However, tenant affordability may well restrict further growth.
Encourage open communication
If you, as a landlord, are unsure of the imminent changes this year and how they impact you, it’s likely your tenants may also be confused. They may have heard about landlords leaving the market and are nervous about their future but are too nervous to ask. Open communication and honest relationships are the key to a successful landlord-tenant relationship at any time. It helps you identify any problems early and resolve them fast. However, keeping communication channels going during the changes that will take place this year will be especially important.
Consider diversification to spread risk
If you’re already seeing success and plan to expand your portfolio then the Autumn Budget’s stamp duty changes on additional homes will mean increased costs for you. Considering a diversification of your portfolio, such as HMOs or offering student housing, could give you additional markets to serve and spread your market risk. Be aware that although HMOs and student housing offer higher returns, they also require more work.