2024 property takeaways: lessons for landlord success in 2025

The start of 2025 presents the ideal opportunity for landlords to reflect on the key developments from 2024 to successfully navigate an evolving rental market. From new regulations to changing tenant preferences, the past year offered valuable insights that can guide you toward compliance, profitability, and long-term success.

In this blog we explore the critical takeaways that will help landlords thrive in the year ahead.

Manage rising mortgage rates and cost pressures

In 2024, rising mortgage rates and increased cost pressures were significant concerns for landlords. Many saw their profits squeezed as interest rates climbed, making it more challenging to balance affordability for tenants with the need to maintain financial viability.

To mitigate future rate volatility, consider exploring fixed-rate mortgages or refinancing options. Additionally, a structured rent review calendar will help you manage rent increases within legal limits while keeping your properties competitively priced. Staying strategic with your financial planning is key to sustaining profitability.

Invest in energy efficiency

Another crucial lesson from 2024 is the growing demand for energy-efficient homes. With utility costs rising and sustainability a top priority, tenants are increasingly seeking properties with strong energy performance. Tighter regulations on EPC ratings are on the horizon, with penalties for non-compliance set to increase.

Investing in energy-saving upgrades—such as improved insulation, double glazing, and modern heating systems—not only avoids future fines but also enhances tenant satisfaction and property value.

Update your pet policies

Tenant rights evolved in 2024, with a growing shift towards more pet-friendly rental options. As this trend continues, it's important to establish a clear pet policy, including requirements for insurance or additional security deposits where necessary. Updating your agreements to reflect these changes will help ensure compliance while expanding your tenant pool.

Strengthen compliance and tenant relationships

Compliance remained a major theme last year, with local councils empowered to impose heavier fines for regulatory breaches. Landlords who built positive relationships with tenants and focused on proactive dispute resolution found themselves at an advantage.

With the upcoming Private Rented Sector Ombudsman set to provide binding resolutions, managing issues transparently and keeping comprehensive records of all tenant interactions will be crucial. Swift action on repairs and well-documented communications can prevent disputes from escalating.

Prepare for the Renters' Rights Bill (RRB) implementation

The much-anticipated Renters' Rights Bill (RRB) dominated headlines in 2024, setting the stage for sweeping reforms in the private rental sector. This landmark legislation, expected to take full effect by autumn 2025, will abolish Section 21 no-fault evictions, making all tenancies periodic. Additionally, it will establish a national landlord registry and extend the Decent Homes Standard to private rentals.

Landlords who took early steps to prepare for these changes are now better positioned to ensure compliance and minimise disruption. If you haven’t already, it’s time to familiarise yourself with the new legal grounds for possession that replace Section 21. Reviewing your tenant agreements to reflect periodic tenancy requirements will be crucial. Start compiling key documents like gas safety certificates and EPCs, as they will be required for the Private Rented Sector Database. Early action will smooth your transition to the new framework.

Adapt to shifting market demand

Shifts in market demand highlighted evolving tenant preferences in 2024. The continued popularity of remote working for example, led to increased interest in properties with home office spaces and access to green areas. In the same veing, suburban and rural properties attracted premium rents, reflecting a broader lifestyle shift.

To remain competitive, consider highlighting features like high-speed internet and dedicated workspaces in your property listings. Small refurbishments that enhance functionality can significantly boost your property’s appeal and rental value.

2024 provided important lessons about the changing landscape of the rental market, adaptability and shifting tenant preference. By learning from these experiences and taking proactive steps, you can position yourself for a successful 2025. Prioritise compliance, invest in sustainability, and cultivate positive tenant relationships to future-proof your rental business in a rapidly evolving market.