- Rising mortgage rates
- Changes in energy-efficiency standards
- The introduction of the Renters Rights Bill
- Taxation changes
- Tenant affordability and rent arrears
- Tenants asking for ‘breathing space’
- Tenants refusing to leave
- Managing property repairs
- Voids and vacant properties
- FAQs
- Things to remember
It’s true that being a landlord has become slightly harder in the last decade compared to how it was in the past. But since the concept of renting began, government regulations have continued to change.
Change is often worrying for landlords and – on top of that – simply being a landlord comes with high responsibilities and potentially high stress. It isn’t all doom and gloom, but staying informed and understanding landlord worries is important if you’re thinking about stepping into property management.
In this article, we outline the biggest worries of landlords and potential solutions to help protect yourself.
Rising mortgage rates
Mortgage rates have been high in recent years, particularly for buy-to-let mortgages, which has had an impact on many landlords in the market today.
Recent data shows interest rates are dropping and the Bank of England is hopeful that rates will continue to fall. But there’s always a concern among landlords that things can change at the drop of a hat.
For landlords on fixed terms that are coming to an end, renewing a mortgage can leave you with significantly higher monthly payments than what you’re used to. Of course, this can decrease profit margins significantly.
The solution :
It’s important to plan ahead as much as possible. If you know your fixed-term mortgage is coming to an end soon, and you have limits on how much you can raise rent, consider raising rent early to prepare for the higher costs.
Interest rates are reviewed every six weeks, so it’s also a good idea to keep an eye on the changes so you can plan for higher outgoings as much as possible.
Changes in energy-efficiency standards
Landlords have always had to ensure their property meets stricter energy-efficiency standards compared to homeowners selling houses on the open market. Since 2018, a rental property’s energy performance rating had to be E or above.
By 2030, the UK government is making plans to raise the standards once more. It’s possible that new tenancies may have to possess an EPC (energy performance certificate) rating of C or above by 2028, and existing tenancies by 2030.
The solution :
Landlords are invited to have their say on the proposals in an ongoing consultation. The deadline for responses is 2 May 2025. Landlords who don’t currently meet the criteria can also try to plan ahead.
If you’re already planning renovations, try to prioritise energy efficiency so you aren’t caught out if the changes come into force.
Consider looking into small, inexpensive changes or quick wins that may help you reach the higher standards. For example, changing lightbulbs, insulating the loft, or upgrading appliances.
The introduction of the Renters Rights Bill
The Renter’s Rights Bill is designed to protect tenants against rogue landlords and unfair practices. Yet its introduction will bring some potentially worrying adjustments for landlords.
In summary, the Renter’s Rights Bill (planned for implementation in 2025) intends to:
- End “no fault” evictions
- Abolish Section 21 notices (replacing them with Section 8 notices)
- Remove fixed term assured tenancies
- Limit rent raises to once per year and in line with market rates
- Ban landlords from accepting offers above the asking price
- Tighten discrimination rules (e.g. preventing landlords from rejecting tenants on benefits)
- Empower tenants to challenge rent increases and certain rules, such as no pet policies
The solution :
Familiarise yourself with the rules as best as possible. Make sure your communication and management of rent arrears is up to scratch. Prepare as best as possible for the changes so you aren’t at fault in any way in the future.
Using a rental management software, like Rentila, offers landlords templates for tenancy agreements and other correspondence, which can help you operate in line with the changes.
Automated functions also allow landlords to issue payment reminders and keep records secure, which can help you evict and respond to tenant challenges with evidence.
Taxation changes
Stamp duty and Section 24 are two of the biggest taxation changes landlords face right now – many of which can be a big worry for landlords.
Section 24 has been changing landlord taxation since 2017, which has essentially reduced the tax relief landlords can claim and introduced full tax payments for landlords on rental income, with the ability to claim back up to 20% of mortgage interest rate costs.
Stamp duty changes are more recent, with stamp duty on the purchase of additional properties increasing for landlords from 3% above the standard residential rates (which are also increasing) to 5%. This means landlords expanding their portfolio have to pay more tax upfront from 01 April 2025 onwards.
The solution :
Landlords have to plan expansions carefully. Raising rent on existing portfolios (in line with tenancy agreement terms and new changes) can help landlords raise funds to pay for the higher stamp duty rates and other taxes.
Tenant affordability and rent arrears
Our recent market overview shows that demand for rental properties is currently outstripping supply. But that doesn’t mean tenant affordability isn’t still a major worry for landlords in the market right now.
Over recent years, the cost of living in the UK has continued to rise while wages have stayed stagnant. Most landlords have raised rent to cover their own increasing expenses, which can impact tenant affordability.
Rent arrears aren’t usually the fault of unwilful tenants who don’t want to pay rent. Often, the unexpected happens and leads to missed payments, like losing a job or being hit with a high vehicle bill.
The solution :
Investing in rent guarantee insurance is a good option, as it can cover you for up to 2 years of unpaid rent. Keeping a good relationship with your tenant can also prevent rent arrears issues from escalating.
It’s important to communicate with the tenant as early as possible to come up with a joint solution – all the while following the proper process for managing rent arrears to ensure you’re protected legally if things escalate.
Try not to cause stress with your tenant when payments are missed, as it can lead them to bury their head in the sand. Stay sympathetic and understanding, but look after yourself, too. Don’t let tenant issues take you to financial breaking point.
Tenants asking for ‘breathing space’
If a tenant falls into personal debt or rent arrears with you, they can ask a debt advisor to issue you with a breathing space notice. This can prevent you from contacting the tenant about rent arrears for up to 60 days.
This is designed to alleviate stress for a tenant and prevent them from getting into any further debt while they sort out their financial situation. Yet the process can cause concern for landlords – particularly if you’re owed hefty rent arrears and can’t take any action for two more months.
The solution :
The important thing to remember is that the tenant is seeking help for their financial situation, which is a good thing. It means a debt expert is supporting them to manage their money and the plan is to eventually get themselves out of financial hardship.
With both the tenant and debt advisor aware of your outstanding payments, this can provide comfort to landlords that you may have a payment plan or even your outstanding rent fully paid by the end of the breathing space period.
Tenants refusing to leave
No landlord wants a situation to turn sour, leaving them with no choice but to evict a tenant. But when it’s the only option to protect yourself, landlords have to follow the process to issue notices to get tenants to leave their properties.
However, just because you’ve given notice, that doesn’t always mean a tenant will vacate the property on the date given. A tenant may challenge your notice and be successful if you’ve made a mistake or haven’t documented something properly.
Or they may simply refuse to leave, meaning you have to take the tenant to court to gain a possession order, which forces the tenant out of your property. This process can be costly and lengthy, and if the tenant isn’t paying rent during this period, this can cause worry for landlords.
The solution :
Prevention is key. While you never know if a tenant will suddenly go rogue, most seasoned landlords can tell if a tenant is going to be a problem before signing the tenancy agreement.
Undertaking proper tenant referencing, requiring a guarantor when necessary, maintaining good relationships with tenants, and following the processes properly (all the while maintaining proper records) can reduce the risk of lingering tenants.
Investing in landlord insurance is also a good idea to protect your finances in the event this happens. With good insurance, missed rent payments will be covered, alongside the costly eviction fees you’ll have to foot upfront.
Managing property repairs
Since 2020, the cost of living has been increasing. This has led to higher charges for labour, renovation work, and general maintenance in most areas of the UK. Material costs have also been increasing, which can leave landlords having to pay more to maintain a property in 2025 and beyond.
The solution :
Investing in good landlord building insurance can help you pay for major repairs when a claim meets certain criteria. Factoring in the cost of upcoming repairs can also help landlords finance the maintenance work (e.g. by raising rent).
Landlords can also sign up for fixed-term support from contractors, like plumbers, in the event something goes wrong. This can be cheaper than paying for callouts in an emergency.
Make a habit of monitoring your property routinely, too, so you know what repairs may need to happen and when.
Voids and vacant properties
There are ups and downs to keeping a property vacant. But most landlords don’t want to leave a property empty when they could be earning a steady income from it.
Voids in a property for long periods can have a financial impact on landlords. Even if you haven’t experienced voids as a landlord, the thought of not being able to fill a property when your tenant moves out is a worry for many.
The solution :
Unoccupied property insurance can cover landlords in the event a property is empty for longer than 30 days. Many letting agents also provide a rent guarantee scheme, meaning they’ll fund voids for a certain length of time.
It’s also important to choose a rental property wisely to prevent voids. For example, if you’re buying a new buy-to-let property, speak to local agents to establish the demand levels and going rates. This can offer you peace of mind that the property you’re buying is both desirable and affordable.
FAQs
What is the most common landlord-tenant dispute?
While many things can cause landlords and tenants to run into problems, the most common concern is the return of the tenancy deposit. Security deposits should be returned when the tenant moves out, or it’s kept (in full or partially) if the tenant has caused certain damage.
Tenants often rely on getting their deposits back in full to help them fund their next rental or for general savings. When this doesn’t happen, it can come as a surprise, causing a tenant to challenge the landlord’s decision through formal proceedings.
What is the best tenant to have?
Ideally, landlords want to find a tenant who has a good financial background, communicates well, and is reliable and responsible. The most desirable traits in a tenant are someone who always pays on time, looks after the property, never breaches the tenancy agreement, and reports maintenance issues quickly.
Landlord’s biggest worries : Things to remember
Every landlord wants a stress-free property management experience. Despite changes and uncertainty, it’s possible to enjoy the benefits of owning a buy-to-let property by making the right preparations. Keep the following in mind:
- Landlord insurance can help prevent worries and provide cover for most eventualities.
- Protect yourself from facing excessive repairs by checking on your rental property periodically and exploring fixed-term arrangements with local trades.
- Communicating with tenants and maintaining good relationships can prevent long-term rental arrears and prevent eviction issues.
- Maintaining good records of correspondence and using a property management software (like Rentila) to manage tenancies can protect you from tenant challenges and support with court proceedings.
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