🏡 Landlords in 2025: What You Need to Know About Selling or Letting Your Property in Today’s Challenging Market

By Locus Keys | May 2025

As we approach the midpoint of 2025, the UK property market has entered a transitional phase — particularly for landlords. Legislative changes, shifting tenant demands, rising operational costs, and a cooling housing market are all shaping the way landlords manage, sell, or let their properties.

If you’re a landlord in the current market, this guide breaks down what’s happening — and how you can adapt strategically.

📉 1. Slower Sales Market: Caution Among Buyers

While house prices have held relatively steady in some areas, many landlords are finding that selling a property now takes longer and may not achieve the same prices seen during the 2021–2022 post-COVID surge.

Key Factors:

• Higher mortgage interest rates: The Bank of England base rate remains elevated to combat inflation, deterring many potential buyers — especially first-time homeowners.

• Affordability strain: With the cost-of-living crisis still affecting households, buyers are more cautious and negotiations are tighter.

• More competitive market: Buyers have greater choice, and many are opting for turn-key homes over tenanted or fixer-upper properties.

  
  

What This Means for Landlords:

• Vacant sales perform better: Many buyers prefer properties without tenants.

• Proper presentation is key: Homes that are decluttered, well-staged, and energy-efficient sell faster and for closer to asking price.

• Local expertise matters: Valuations need to be realistic and region-specific — not based on outdated peak market data.

  
  

📌 At Locus Keys, we offer precise market appraisals and end-to-end selling support. We understand how to market to both investors and homeowners to get you the best return.

🏘️ 2. Rental Market: High Demand Meets Higher Expectations

Despite economic pressures, rental demand remains robust, especially in commuter belts, university cities, and areas with housing shortages.

Current Trends:

• Demand is outpacing supply in many areas like Coventry, Birmingham outskirts, and parts of West London.

• Tenants are more selective, prioritising:

  • Energy-efficient homes (to lower utility bills)

  • Fair rental pricing

  • Responsive property management

• Rental growth: Many landlords have raised rents, but affordability caps are now visible — especially in lower-income demographics.

Challenges:

• Rising mortgage repayments can eat into yield

• Tenant retention is now more valuable than chasing higher rent with frequent turnarounds

  
  

📌 We help landlords retain good tenants with professional management, clear communication, and fair rent reviews — reducing costly void periods.

⚖️ 3. Regulation Overhaul: What You Must Comply With in 2025

The legislative landscape is changing rapidly for landlords. Understanding and complying with these changes is no longer optional.

Important Updates:

🔹 The Renters Reform Bill (2024–2025)

• Abolishes Section 21 “no fault” evictions

• Introduces a new system of periodic tenancies

• Strengthens tenant rights around rent rises and dispute resolution

🔹 Minimum EPC Rating of C

• Applies to new tenancies now, and existing ones by 2028

• Significant fines for non-compliance

🔹 Local Licensing Schemes

• Selective licensing is expanding across multiple boroughs and councils

• Additional paperwork, fees, and inspections may apply

🔹 Electrical Safety, Fire Safety, HMO Standards

• More rigorous enforcement by local councils

• Need for regular inspections, documentation, and compliant upgrades

  
  

📌 At Locus Keys, we stay on top of compliance so you don’t have to. We can assess your property and help you upgrade as needed — from insulation to safety checks.

💸 4. Cost Pressures: Margins Are Thinning

Operating as a landlord is becoming more expensive:

• Repair & maintenance costs have risen 10–20% in many regions

• Insurance premiums are climbing due to increased claims and risks

• Void periods are more costly than ever due to higher holding costs (mortgages, council tax, etc.)

What You Can Do:

• Switch to trusted, value-driven maintenance providers

• Consider bundled property management to reduce admin and stress

• Plan capital expenditure (CapEx) upgrades wisely — especially those that improve EPC ratings or reduce long-term maintenance

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📌 Locus Keys also offers renovation and decorating services under Locus Development — helping landlords maintain quality standards affordably.

🎯 5. Strategic Advice: Should You Sell or Let in 2025?

Every landlord’s situation is different, but here are some questions to help guide your decision:

Question	Consider Letting If…	Consider Selling If…
Is your mortgage fixed?	Yes, especially at low rates	No, and rising payments are unmanageable
Is your property energy efficient (EPC C or better)?	Yes	No — retrofitting could be costly
Are rents rising in your area?	Yes, especially if tenants are reliable	No, or your property is underperforming
Do you need a lump sum?	No	Yes, for reinvestment or personal reasons

📌 Book a free consultation with Locus Keys to review your options. We can advise you on maximising returns — whichever route you take.

📢 Final Word: Partner with Experts Who Understand Your Needs

The UK property market is in flux, but with the right guidance and strategy, landlords can still achieve excellent results — whether selling, letting, or holding.

At Locus Keys, we work with landlords across the Midlands and Greater London to provide honest advice, local insights, and complete support from start to finish.

📞 Ready to talk about your property?Call us today on 07902 817931 or email info@locuskeys.co.uk to book a no-obligation strategy session.

📍Locus Keys — Local Knowledge. Professional Results.