Last week, we were delighted to co-host an evening event with Rightmove for our landlord clients, focused on the evolving lettings landscape. With insights spanning market performance, legislative changes, tax structuring and benefits of property management, the session offered a comprehensive look at how landlords can adapt and thrive in a shifting environment.
From short-term market pressures to long-term investment fundamentals, one message was very clear: while change is constant, opportunity remains for those who are informed and proactive.
Rental Market Overview – Christian Balshen, Rightmove
Opening the evening, Christian Balshen delivered a data-led overview of the lettings market, describing current conditions as a “tale of two markets.”
Short-Term Trends (Last 3 Years):
- Supply of available rental properties has increased significantly (+43%)
- Tenant demand has declined (-28%)
- Rental growth has moderated, with average asking rents rising modestly
- Void periods have lengthened, with properties taking longer to let
At face value, these indicators suggest a more challenging environment for landlords. However, when viewed over a longer timeframe, the outlook is considerably more positive.
Long-Term Trends (Last 5 Years):
- Average rents in London have increased by approximately 45%
- Demand has remained resilient relative to supply
- Void periods are lower than five years ago
- Long-term capital growth continues to support investment performance
Christian highlighted the importance of perspective: “While the last three years may feel more difficult, landlords are in a stronger position today than they were five years ago.”
Competing with Build-to-Rent
A key theme was the rapid growth of the build-to-rent sector, with supply in Central London rising sharply in recent years.
BTR developments are increasingly attractive to tenants due to:
- Modern, purpose-built accommodation
- Concierge services and amenities
- Strong branding and community-focused living
- Perceived professional management
However, landlords were reassured that the private rented sector remains highly competitive.
Key Takeaways for Landlords:
- Private rentals are typically more competitively priced than BTR
- Professional management standards can match (and often exceed) those offered by large developments
- Presentation and service are critical differentiators
The gap is not as wide as it may appear - particularly when landlords focus on delivering a well-presented, well-managed property.
Marketing Fundamentals: The Four Ps
Christian also outlined the importance of returning to core marketing principles when letting property:
Product
Presentation is key. Small improvements - such as redecorating, replacing carpets, or staging - can significantly increase tenant interest.
Price
Correct pricing at launch is crucial. Early interest peaks within the first few days, and overpricing can lead to extended void periods that outweigh any potential rental uplift.
Place
Online visibility remains essential, with the majority of tenants finding properties via major portals and agent websites.
Promotion
High-quality photography and detailed listings make a measurable difference. Features such as balconies or outdoor space should be clearly highlighted, as these are highly searched by tenants.
Renters’ Rights Act – Charlotte Hudson, John D Wood & Co.
Charlotte Hudson, Associate Director, Pre Tenancy department, provided an overview of the forthcoming Renters’ Rights Act, describing it as the most significant legislative change in the sector in over 40 years.
Key Changes:
- · Abolition of Section 21 “no-fault” evictions
- All tenancies to become periodic
- Greater reliance on strengthened Section 8 grounds
- Rent increases limited to once per year via formal notice
- Restrictions on rent in advance (limited to one month)
- Tenants given stronger rights, including requesting pets
- Ban on rental bidding above asking price
The legislation will be introduced in phases, beginning imminently, with further elements such as a landlord database and ombudsman to follow.
Charlotte noted that while the reforms may seem significant, the practical impact for many landlords will be limited:
“Most landlords are already operating in a way that aligns with these changes. The key is understanding the detail and staying compliant.”
Tax Planning for Landlords – Mitch Young, Fusion Group
Mitch Young, known as “The Tax Man,” explored the increasingly complex tax landscape facing property investors.
Key Themes:
- The importance of choosing the right ownership structure (personal vs corporate)
- Understanding capital gains tax and inheritance tax exposure
- The distinction between revenue and capital expenditure
- The growing need for long-term, strategic tax planning
He also highlighted the risks of “too good to be true” tax schemes, noting increased scrutiny from HMRC.
Mitch’s core message: “There is no one-size-fits-all solution - careful, considered structuring is key to long-term success.”
Property Management in Practice – Victoria Phillips, John D Wood & Co.
Closing the presentations, Victoria Phillips, Head of Property Management, provided a candid and practical insight into the realities of property management.
With over 200 pieces of legislation affecting landlords before a tenancy even begins, compliance remains a critical risk area.
Key Considerations:
- The importance of accurate documentation - errors can invalidate possession claims
- The increasing complexity of regulation and licensing requirements
- The operational demands of managing property, often outside standard working hours
- The value of professional management in mitigating risk
Victoria strongly recommended landlords consider rent guarantee insurance and professional management services, particularly in light of the upcoming legislative changes.
Final Thoughts
Across all speakers, a consistent theme emerged: while the lettings landscape is becoming more complex, the fundamentals of successful property investment remain unchanged.
- Price correctly
- Present well
- Stay compliant
- Seek professional advice
- Tenant quality is becoming more important than ever
For landlords who take a long-term view and adapt to change, the lettings market continues to offer strong and resilient opportunities.
If you would like to discuss any of the topics covered, or speak to one of our experts, please get in touch with the team: [email protected]
