2025 wrapped: the year that changed UK rentals

As 2025 draws to a close, it's time to look back at a year that fundamentally reshaped the UK private rented sector (PRS). From landmark Renters' Rights legislation receiving Royal Assent to cooling rental inflation and significant tax changes, 2025 has been a year of profound transformation for landlords and renters alike.

This is August's end-of-year recap. The headlines, the hard numbers, and the regulation that will shape 2026 and beyond. Whether you're a seasoned landlord or just starting out, understanding what happened this year is essential for navigating what comes next.

Royal Assent: the Renters' Rights Act becomes law

The single biggest story of 2025 was undoubtedly the Renters' Rights Act 2025 receiving Royal Assent on 27 October. After months of parliamentary debate, amendments, and anticipation, the legislation finally became law at 7:40pm that evening, marking what many are calling the most significant shake-up to the private rental sector in nearly 40 years.

The Act represents Labour's manifesto promise to transform renting in England, with the government confirming on 13 November that the bulk of the reforms will come into effect from 1 May 2026, approximately six months after Royal Assent. This "big bang" implementation date means that all tenancies, whether new or existing, will move onto the new system simultaneously.

The end of Section 21 and assured shorthold tenancies

At the heart of the Act is the abolition of Section 21 'no-fault' evictions. From 1 May 2026, landlords will no longer be able to evict tenants without providing a specific reason. All assured shorthold tenancies (ASTs) will automatically convert to assured periodic tenancies on this date, regardless of any remaining fixed term.

This means that a three-year tenancy agreement signed in April 2026 will instantly become a rolling monthly tenancy from 1 May. Whilst tenants can give just two months' notice to leave at any time, landlords must rely on Section 8 grounds for possession, which require specific reasons such as rent arrears, property sale, or the landlord needing to move in.

The challenge for landlords is that many Section 8 grounds are discretionary, meaning a judge must be satisfied that it's reasonable to grant possession. With court backlogs already significant across England, the removal of Section 21 creates greater uncertainty about regaining possession when needed.

Rental bidding ban and rent control measures

The Act also introduces a ban on rental bidding wars, requiring landlords to advertise properties at a fixed rent. Tenants will have the right to challenge rent increases at the Property Tribunal if they believe the proposed rent exceeds market rates, and these challenges are free for tenants to make.

Given that tribunal challenges can delay rent increases by several months, many experts predict that rent reviews will become more protracted and contentious. The government has pledged to establish a mechanism to determine whether rent increases are within market rates before cases reach the tribunal, but no timeframe has been provided for this system.

The Act limits rent increases to once per year using a prescribed notice procedure, regardless of the tenancy agreement terms. For landlords who've become accustomed to regular rent reviews aligned with market conditions, this represents a significant operational change.

The PRS Landlord Database and Ombudsman

Looking ahead to late 2026 and into 2028, the Act requires all landlords to register on a new Private Rented Sector (PRS) Database. The database will include landlord and managing agent details, property information, and any enforcement actions taken against them. It's designed to increase transparency and help tenants make informed decisions when choosing properties.

By 2028, all landlords must also be members of a government-approved PRS Landlord Ombudsman scheme. This provides tenants with a route to resolve disputes without going to court, reducing costs and delays for both parties.

For many small landlords, these requirements represent yet another layer of regulation and cost. However, for professional landlords who already maintain high standards, the database and ombudsman schemes could help differentiate them from rogue operators.

What landlords did in response

The months leading up to Royal Assent saw significant market activity. Many landlords rushed to serve Section 21 notices before they were abolished, whilst others increased rents substantially ahead of the new restrictions coming into force. According to the National Residential Landlords Association (NRLA), 41% of landlords indicated they were likely to sell properties during 2025-26, compared to just 19% in 2023-24.

Industry stakeholders have consistently pressed for sufficient lead-in time to allow the sector to adapt. With 1 May 2026 now confirmed as the implementation date, landlords have approximately five months to prepare for the new tenancy regime. This includes reviewing existing tenancy agreements, ensuring all compliance documentation is current, and planning for the transition to periodic tenancies.

The great rental cooldown: ONS data tells the story

Whilst the Renters' Rights Act grabbed headlines, 2025 also witnessed a remarkable shift in rental market dynamics. After years of soaring rents and intense competition, rental inflation finally began to cool.

ONS Price Index of Private Rents shows consistent deceleration

The Office for National Statistics Price Index of Private Rents (PIPR), which measures rent changes across all tenancies, not just new lets, tells a clear story of deceleration throughout 2025.

At the start of the year, UK private rents were increasing at 9.0% annually in December 2024. By February 2025, this had fallen to 8.1%. The trend continued throughout the year:

• March 2025: 7.7% annual growth

• May 2025: 7.0% annual growth

• June 2025: 6.7% annual growth

• August 2025: 5.7% annual growth

• October 2025: 5.0% annual growth (the lowest since August 2022)

By October 2025, the average UK rent stood at £1,360 per month. This is just £65 (5.0%) higher than 12 months earlier. This represents a dramatic slowdown from the record high annual rise of 9.2% seen in March 2024.

In England, the pattern was similar, with annual inflation falling from 9.2% in January 2025 to 5.0% by October. Regional variations were notable, with the North East maintaining the highest inflation (8.9% in October) and Yorkshire and the Humber the lowest (3.8%).

Crucially, this cooling wasn't uniform across the country. Wales saw annual growth of 6.7% in October, whilst Scotland recorded just 3.4%. The latter reflecting ongoing affordability constraints and the legacy of previous rent control measures.

Portal data confirms the trend

Whilst the ONS data provides the official measure of rent inflation across the entire stock, property portal Zoopla's rental market reports confirm the trend for new lettings specifically. By October 2025, Zoopla reported that UK rents for new tenancies had risen by just 2.2% over the previous 12 months, down from 3.3% a year earlier, the slowest rate of growth in four years.

The average rent for a new let stood at £1,320 per month, just £30 higher than the previous year. This slowdown was driven by a narrowing of the supply and demand gap that had characterised the post-pandemic rental market.

Why did rental inflation cool?

Two major factors drove this deceleration:

1. Plummeting net migration: Provisional ONS estimates show a dramatic 78% decline in net migration between June 2023 (924,000) and June 2025 (204,000). Since many people coming to the UK for work and study initially rely on the rental market, this sharp reduction significantly eased demand pressure.

2. The return of first time buyers: Improved mortgage affordability through 2025, driven by falling interest rates, brought many renters back into the property purchase market. UK Finance data shows first time buyer numbers rose by approximately 20% in 2025 compared to the previous year, with many of these buyers moving out of rental accommodation and freeing up stock.

Supply improved but remained constrained

Perhaps the most encouraging development for renters was the improvement in supply. According to Zoopla, the number of homes available to rent increased by 15% over the year, with the average letting agency branch having 14 properties available, up from a low of 10 in 2023.

However, context matters. Rental supply remained 22% below pre-pandemic levels, meaning the market was still far from the abundance renters enjoyed in 2019. The time properties stayed on the market before being let increased to 17 days, which is 18% longer than a year earlier and 42% longer than during the pandemic-era rental boom.

This improvement in supply, combined with weaker demand, fundamentally shifted market dynamics. Renters had more choice, landlords had less pricing power, and the frenzied competition for properties began to ease. Local variations were stark. Some areas like Birmingham and Dundee saw rents for new lets actually fall year-on-year, whilst more affordable locations like Carlisle, Chester, and Motherwell recorded growth exceeding 7%.

For landlords who've adapted to this new normal, the key takeaway is clear. The days of automatic, double-digit rent increases are over for most markets. Success in 2026 will require competitive pricing, quality properties, and professional service to attract and retain tenants.

Interest rate movements: some relief for landlords

After the sustained pain of 2022-23, when the Bank of England base rate soared from 0.1% to 5.25%, 2025 brought some welcome relief as the Monetary Policy Committee (MPC) began gradually cutting rates.

The rate cut timeline

The base rate began 2025 at 4.75%, having been cut from 5% in November 2024. The Bank continued its cautious approach to easing monetary policy through the year:

• February 2025: Cut to 4.5% (all nine MPC members voted for a cut)

• May 2025: Cut to 4.25% (five members voted for the cut, two wanted to hold, two wanted a larger 0.5% cut)

• August 2025: Cut to 4.0% (five members voted for the cut, four voted to hold)

• November 2025: Held at 4.0% (decision to maintain the rate)

By year's end, the base rate stood at 4.0%. This is a full 1.25 percentage points lower than its peak, though still significantly elevated compared to the ultra low rates that prevailed for over a decade.

Each quarter point cut was equivalent to roughly £15 per month in reduced repayments per £100,000 of mortgage debt. For a landlord with a £300,000 tracker mortgage, the cumulative cuts through August represented approximately £170 per month in savings. Which is meaningful relief, though not enough to fully offset the increases of previous years.

Mixed signals for 2026

The Bank's messaging remained cautious throughout the year. Whilst inflation had fallen below the 2% target temporarily in September 2024, it subsequently rose to 3.6% in June 2025. This was up from 3.4% in May. This volatility, combined with global uncertainties including potential US trade tariffs, complicated the outlook for further cuts.

Market analysts' predictions for 2026 varied widely. Some anticipated the base rate could fall to around 3.5% by mid-2026, whilst others suggested a more gradual approach with perhaps one or two further quarter-point cuts at most. The key message from the Bank was that policy would remain "gradual and careful" rather than following a pre-determined path.

Impact on buy-to-let mortgages

For landlords, the rate environment remained challenging despite the cuts. Average 5-year fixed mortgage rates, which had reached nearly 6% in late 2022, had fallen to around 4.5% to 4.7% by the end of 2025. Whilst this represented improvement, it was still substantially higher than the sub-2% rates many landlords had enjoyed on deals struck before 2022.

The approximately 1.6 million fixed-rate mortgage deals due to expire during 2025 meant many landlords faced significant payment increases as they moved onto new, higher-rate deals. Even with the base rate cuts, mortgage affordability remained a major pressure point, particularly for leveraged landlords on variable or tracker mortgages.

Those on standard variable rates (SVRs) saw more immediate benefit from base rate cuts, though SVRs remained expensive compared to fixed deals. Major lenders including Halifax, Nationwide, Santander, and others typically passed on base rate cuts to tracker mortgage customers within weeks, though the exact timing and amount varied by lender.

Looking ahead to 2026, the key question for landlords is whether rates will fall far enough, fast enough, to meaningfully improve buy-to-let viability. With rental growth slowing and regulatory costs rising, the margin between rental income and mortgage costs remains tight for many investors.

Stamp Duty changes bite buy-to-let investors

April 2025 brought significant Stamp Duty Land Tax (SDLT) changes that particularly impacted landlords and property investors. The temporary threshold increases introduced in September 2022 expired on 31 March 2025, reverting to previous levels and creating a rush to complete transactions before the deadline.

The key changes from 1 April 2025

The nil-rate threshold, which had been £250,000 since September 2022, returned to £125,000 for standard residential purchases. For first-time buyers, the nil-rate threshold dropped from £425,000 to £300,000, and the maximum purchase price for First-Time Buyers' Relief fell from £625,000 to £500,000.

For landlords purchasing additional properties, these changes compounded the impact of the higher rates surcharge, which had already increased from 3% to 5% in October 2024. This meant that a landlord buying a £300,000 property as a buy-to-let investment faced substantially higher SDLT costs:

• Before April 2025: £9,000 (5% surcharge on amounts over £250,000)

• After April 2025: £18,750 (5% surcharge on the first £125,000, 7% surcharge from £125,001 to £250,000, and 10% surcharge from £250,001 to £300,000)

This more than doubled the tax liability, adding significant upfront costs to property investment.

Market response: the forestalling effect

HMRC data revealed a pronounced "forestalling effect," with buyers rushing to complete purchases before the April deadline. Stamp duty receipts from higher-rate additional dwelling (HRAD) transactions reached £5.4bn in 2024-25, a 19% increase year-on-year, with the surcharge element alone generating £2.8bn.

Total residential stamp duty receipts rose 21% from £8.6bn to £10.4bn, alongside a 20% increase in residential transactions to 1.05 million. Claims for First Time Buyers' Relief jumped by 37% as buyers scrambled to complete before thresholds tightened, securing an average tax saving of around £5,000.

However, some of those who rushed to complete in early 2025 may now be regretting the decision. Mortgage rates have since fallen from the levels seen in late 2024 and early 2025, meaning the upfront tax saving may be overshadowed by higher borrowing costs locked in at that time. For some buyers, the additional annual interest cost could quickly erode or exceed the stamp duty saving.

Impact on landlord investment decisions

The combined effect of higher stamp duty rates and surcharges has made buy-to-let investment significantly more expensive. For a landlord considering a £400,000 property purchase, the total SDLT bill rose from £14,000 to £32,500. Which is an increase of £18,500 or 132%.

These upfront costs fundamentally change the economics of property investment. With rental yields under pressure from slower rent growth, higher mortgage rates, and increasing operational costs, many investors have concluded that the numbers simply don't work anymore.

Propertymark noted that pressure on landlords and second-home buyers had "intensified" following these changes, contributing to the wave of landlord exits observed throughout 2025. For those remaining in the market, the higher stamp duty costs mean longer payback periods and lower returns on investment, making careful property selection and financial planning more critical than ever.

Section 24 and the ongoing tax squeeze

Whilst 2025 didn't bring new property tax legislation comparable to the stamp duty changes, the ongoing impact of Section 24 of the Finance Act 2017 continued to squeeze unincorporated landlords with mortgaged properties.

The mortgage interest restriction continues

Section 24, fully implemented since April 2021, restricts tax relief on mortgage interest payments to the basic rate of income tax (20%). Previously, landlords could deduct all their mortgage interest from their rental income before calculating tax, meaning higher and additional rate taxpayers could claim relief at 40% or 45%.

Under the current system, landlords must:

1. Calculate tax on their gross rental income (before mortgage costs)

2. Receive a 20% tax credit against their mortgage interest payments

3. Pay the difference if they're higher or additional rate taxpayers

For a higher-rate taxpayer with £30,000 in rental income and £20,000 in mortgage interest, the tax liability under Section 24 is substantially higher than under the old system. Instead of paying tax on £10,000 of profit (£30,000 income minus £20,000 interest), they must pay 40% tax on the full £30,000 income (£12,000), offset by just 20% of the £20,000 interest (£4,000), resulting in £8,000 tax due.

This compares to just £4,000 under the old system. A 100% increase in tax liability.

The incorporation trend accelerates

In response to Section 24, many landlords continued the trend of transferring properties into limited companies during 2025. Whilst incorporation involves upfront costs including Capital Gains Tax on the transfer and professional fees, it can offer significant long-term tax savings.

Limited companies pay corporation tax (19% for profits under £50,000, rising to 25% for profits over £250,000) rather than income tax, and can fully deduct mortgage interest as a business expense. For landlords with substantial portfolios and borrowing, this often results in materially lower tax bills.

However, incorporation isn't straightforward for landlords. It requires ongoing company administration, annual accounts, and Corporation Tax returns. Extracting profits from the company (whether as salary or dividends) incurs additional tax charges. For landlords with just one or two properties, the complexity and costs may outweigh the benefits.

The key point is that Section 24 continues to penalise unincorporated landlords with mortgages, particularly those in higher tax brackets. As rental income remains relatively stable in 2026 whilst costs increase, tax efficiency becomes increasingly critical to maintaining viable returns.

Looking ahead: the 2027 property income tax increase

Whilst not implemented in 2025, landlords should be aware that from April 2027, a new "property income tax" comes into force. This will see landlords pay higher rates specifically on rental income:

• Basic rate taxpayers: 22% (up from 20%)

• Higher rate taxpayers: 42% (up from 40%)

• Additional rate taxpayers: 47% (up from 45%)

These increases apply only to property income, not other income sources. For landlords already struggling with Section 24 restrictions, this represents a further erosion of returns and provides additional incentive to consider incorporation or portfolio restructuring before 2027.

Energy efficiency: the 2030 deadline looms larger

2025 was a year of consultation and planning regarding energy efficiency requirements, even though no major new standards came into force. However, the direction of travel became clearer, and landlords who haven't yet begun preparing for the EPC C requirement should treat 2026 as the year to act.

The EPC C by 2030 timeline

Government consultations throughout 2025 confirmed the phased implementation approach for requiring all rental properties to achieve an Energy Performance Certificate (EPC) rating of C or above:

• 2026: New EPC methodology introduced, focusing on fabric performance, heating system efficiency, and smart readiness

• 2028: All new tenancies must meet EPC C standard

• 2030: All tenancies must meet EPC C standard

The current Minimum Energy Efficiency Standards (MEES) require properties to have at least an EPC E rating. With only around 60% of properties currently meeting the C standard, a significant proportion of the rental stock will require upgrading over the next five years.

Cost caps and exemptions clarified

The 2025 consultations provided more detail on the financial limits landlords would face. The government proposed a cost cap of £15,000 per property, with a possible affordability exemption lowering this to £10,000 for some landlords.

If a landlord spends up to the applicable cap and still can't achieve EPC C, they'll be able to register an exemption allowing them to continue letting the property. This provides important protection against unlimited upgrade costs, though landlords will need to demonstrate they've made reasonable efforts to improve energy efficiency.

The new EPC methodology launching 2026

Perhaps the most significant development was clarity on the new EPC assessment methodology launching in the second half of 2026. Unlike the current system, which primarily measures running costs, the new approach will focus on:

• Fabric performance: How well the building retains heat through insulation, windows, and draught-proofing.

• Heating system efficiency: Prioritising low carbon systems like heat pumps over fossil fuel heating.

• Smart readiness: The building's ability to optimise energy use through smart controls and systems.

This represents a fundamental shift that could see properties with currently acceptable ratings downgraded. A property with an EPC C based on cheap gas heating but poor insulation might fall to D or E under the new methodology.

The government confirmed that properties with valid EPC C certificates at the time the new methodology launches will be "grandfathered" until those certificates expire, typically after 10 years. This creates a strong incentive to obtain an EPC C rating in 2026 using the current methodology if your property is close to the threshold.

Landlord response: proactive upgrades

Despite the implementation date being five years away, many landlords began taking action in 2025. Survey data showed that 58.3% of landlords had already made eco-friendly upgrades, whilst 28.6% were specifically targeting EPC C compliance.

This proactive approach makes sense for several reasons. Properties with better energy ratings let faster and command higher rents as tenants increasingly factor running costs into their decisions. Spreading upgrade costs over several years is also more manageable than facing a last-minute rush in 2029.

Common improvements landlords made in 2025 included:

• Loft and cavity wall insulation, which is often the most cost-effective upgrades

• Double glazing and draught-proofing

• Modern, efficient boilers and heating controls

• Solar PV panels where suitable

• Smart thermostats and energy management systems

For landlords managing their properties themselves, using a comprehensive property management app to track EPC ratings, certificate expiry dates, and planned maintenance is essential. This ensures you have adequate time to plan and budget for any necessary upgrades well before the 2028 and 2030 deadlines.

The exodus continues: landlords voting with their feet

Perhaps no single data point captured the mood of 2025 quite like the NRLA's finding that 41% of landlords indicated they were likely to sell properties during the year. More than double the 19% figure from 2023-24.

Why landlords sold up

The reasons were multifaceted but interconnected:

Regulatory complexity: The incoming Renters' Rights Act, on top of existing licensing requirements, energy efficiency rules, and other compliance obligations, created an overwhelming burden for small landlords managing just one or two properties.

Rising costs: Higher mortgage rates, despite the 2025 cuts, increased stamp duty, property maintenance costs, and insurance premiums all squeezed margins. When combined with cooling rental growth, many landlords found the returns no longer justified the effort and risk.

Tax pressures: Section 24, higher stamp duty surcharges, reduced Capital Gains Tax allowances, and the looming 2027 property income tax increases made buy-to-let investment increasingly tax-inefficient for unincorporated landlords.

Court backlogs: With Section 21 being abolished and discretionary Section 8 grounds requiring court approval, concerns about being unable to regain possession of properties when legitimately needed drove many landlords to exit.

Life stage considerations: For many landlords approaching retirement, 2025 represented a natural exit point. House prices remained relatively robust, and selling before further regulatory changes gave certainty and allowed diversification into less demanding investments.

Impact on the rental market

This landlord exodus created conflicting pressures. On one hand, many properties were sold to first-time buyers or owner-occupiers, removing them from the rental stock permanently and constraining supply. On the other hand, some properties were purchased by other landlords or institutional investors, maintaining rental availability.

The net effect varied by location. In some areas, particularly outside London and major cities, rental supply actually improved as the properties that remained on the market faced less competition. In other areas, particularly in university towns and high-demand city centres, the loss of rental properties exacerbated existing shortages.

For tenants, the impact depended on circumstances. Those with stable incomes and good references benefited from improved choice and slower rent growth. However, tenants with more complex situations, for example benefit recipients, those with pets, or people with imperfect rental histories, have found it harder as remaining landlords became more selective.

Staying in the market: the professionalisation imperative

For landlords who remained in the market or entered it in 2025, the clear message was that success requires professionalisation. The days of casual, amateur landlording are over. Today's successful landlords:

• Use comprehensive management software to stay organised and compliant

• Maintain detailed records of all interactions, repairs, and compliance work

• Provide quality properties that meet or exceed regulations

• Respond quickly to tenant enquiries and maintenance issues

• Keep up-to-date with regulatory changes through resources like the August blog and Renters' Rights Act guidance

• Consider their tax structure carefully, taking professional advice where appropriate

• Build contingency funds for unexpected repairs and void periods

The landlords who approach property investment as a business, with proper systems, professional standards, and realistic expectations about returns, are those most likely to thrive in the new landscape of 2026 and beyond.

What 2025 taught us about the future

As we reflect on 2025, several clear lessons emerge for landlords and tenants navigating the transformed rental market:

1. Regulation is here to stay: The Renters' Rights Act isn't a one-off change but part of a long-term shift towards greater tenant protections and landlord obligations. Further regulation is inevitable, making ongoing adaptation essential.

2. Market dynamics have fundamentally changed: The post-pandemic rental boom is over. Supply and demand are rebalancing, and landlords can no longer rely on automatic rental growth. Success requires competitive pricing, quality properties, and professional service.

3. Tax efficiency matters more than ever: With Section 24 biting, stamp duty elevated, and further tax rises coming in 2027, landlords must carefully consider their structure and take professional advice to optimise their tax position.

4. Energy efficiency is the next frontier: The 2030 EPC C deadline may seem distant, but with the new methodology launching in 2026, landlords should begin planning and budgeting for necessary upgrades now.

5. Professionalisation is non-negotiable: The complexity of modern landlording makes comprehensive property management tools essential. Trying to manage properties using spreadsheets and memory is increasingly untenable.

6. Interest rate policy remains critical: Whilst the Bank of England made meaningful rate cuts in 2025, mortgage costs remain elevated compared to the ultra-low rate era. Further cuts in 2026 could improve buy-to-let economics, but landlords shouldn't assume rapid declines.

7. Location matters more than ever: With such significant regional variations in rental growth, supply dynamics, and property values, successful landlording in 2026 will require careful market selection and local knowledge.

Looking ahead: what 2026 holds

As we enter 2026, landlords face a year of significant change and challenge:

1 May 2026 marks the implementation of the Renters' Rights Act tenancy reforms, the single most important date in decades for private landlords. All tenancies convert to periodic, Section 21 disappears, and a new era begins.

Interest rates: The trajectory of Bank of England base rate cuts will be critical. Further reductions could ease mortgage costs and improve buy-to-let viability, whilst any pause or reversal would intensify pressure.

Rental market: Most experts predict rental growth of 2-3% in 2026, substantially below recent years but still ahead of general inflation. Supply is likely to remain constrained, supporting modest rent increases.

Energy efficiency: The new EPC methodology launches in the second half of 2026, creating urgency for landlords to secure EPC C certificates under the current system if their properties are borderline.

Landlord numbers: The exodus is likely to continue, with many landlords selling ahead of the May implementation date. However, some investors may re-enter the market as conditions stabilise and opportunities emerge.

Compliance requirements: Beyond the major Renters' Rights Act changes, landlords should expect ongoing evolution of licensing requirements, safety standards, and administrative burdens.

Preparing for success in 2026

If you're a landlord planning to stay in the market, here's what you should be doing right now:

1. Review all tenancy agreements and understand how they'll convert to periodic tenancies on 1 May 2026. Ensure all documentation is current and properly stored.

2. Get your compliance house in order. Use August's compliance checklist to verify you have all required certificates, registrations, and safety checks up to date.

3. Plan any necessary rent increases to take place before May 2026, when the new once-yearly restriction comes into force. Ensure increases are reasonable and within market rates.

4. Check your EPC ratings and consider whether achieving C standard now, under the current methodology, makes strategic sense before the new system launches.

5. Review your tax structure. If you have multiple properties with substantial borrowing, consult with an accountant about whether incorporation could reduce your tax burden.

6. Join a landlord ombudsman scheme voluntarily before it becomes mandatory. This demonstrates professionalism and provides access to dispute resolution when needed.

7. Invest in proper management systems. Download August to streamline rent tracking, compliance management, maintenance requests, and AI property assistant.

8. Build financial resilience. Ensure you have adequate reserves for void periods, repairs, and the costs associated with any necessary improvements.

9. Stay informed. The regulatory landscape continues to evolve rapidly. Follow the August blog for updates, analysis, and practical guidance.

10. Consider your long term strategy. Is landlording still right for you? If yes, how can you optimise your portfolio? If no, what's your exit plan?

Final thoughts

2025 was undeniably challenging for UK landlords. Royal Assent for the Renters' Rights Act, cooling rental inflation, elevated tax burdens, and a wave of exits reshaped the private rented sector fundamentally. The certainties of the pre-pandemic era, when buy-to-let was a reliable path to income and capital growth are gone.

Yet opportunities remain for landlords who adapt. The rental market still provides homes for 11 million people, many of whom have no realistic prospect of buying in the near term. Strong, stable demand exists, particularly for quality properties managed professionally. Also read what landlords can expect in 2026.

Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.