If you’re a landlord—or thinking about becoming one—you might be asking yourself if now is a good time to enter the rental market. With changes like the Renters’ Rights Bill set to take effect in 2025, it’s natural to have questions about what the future holds for landlords. The good news? There are still plenty of compelling reasons why renting out your property can be a smart move.
Let’s explore why now could be a great time to be a landlord.
1. High Demand for Rental Properties
With the cost of living rising and mortgage rates climbing, more people are turning to renting as home ownership becomes less achievable. At the same time, some landlords are exiting the market, leading to fewer rental properties available. This creates an opportunity for you as a landlord, as tenant demand is high.
On average, there are multiple applicants per available property across the UK, meaning tenants are competing for a limited supply. This allows landlords to secure tenants more easily and reduce vacancy periods.
2. Long-Term Security and Income
Renting out a property provides a consistent, long-term income stream. When managed well, it can be an excellent source of passive income that can supplement your retirement savings or be passed down to family members. Additionally, property values have been on the rise, so if you decide to sell in the future, you could benefit from capital appreciation.
3. For Accidental Landlords: There’s Opportunity
Some homeowners find themselves becoming accidental landlords, meaning they end up renting out their property unexpectedly. While this might feel daunting at first, it’s important to know that a well-maintained property can attract quality tenants who are looking to ‘try before they buy’ or explore new neighborhoods. Renting out your property can become a rewarding experience with the right approach.
4. Rising Rents Offer Great Potential for Growth
While rental prices have slowed since the pandemic, the current demand and limited availability make rental increases more likely. Our rental forecast suggests that UK rental growth in the mainstream market will increase by 17.6% over the next five years. In prime regional markets, the increase is expected to be 12.6%, while prime central London will see a growth of 12.6%, with outer prime London hitting 15.4%.
These rising rents present a valuable opportunity for landlords to increase rental income and boost property value over time.
The Bottom Line: Renting Out Your Property Can Be a Smart Investment
Despite the upcoming changes to rental laws, the current market conditions still present a strong case for becoming—or staying—a landlord. High tenant demand, long-term income potential, and the opportunity for rising rents make this an ideal time to consider your options. If you’ve been on the fence about renting out your property, now may be the right time to take the leap.
