How to make your rental property more competitive in 2025

The rental market in the UK continues to be defined by high demand and limited supply. According to the 2024 State of the Industry Lettings Report, tenant demand continues to outpace available housing stock. This imbalance is projected to persist into 2025, creating an environment where well-prepared landlords can achieve strong yields. However, the evolving regulatory landscape, including the forthcoming Renters' Rights Bill, makes it more crucial than ever to offer competitive, compliant, and desirable properties by preparing ahead of time.

As a landlord looking to capitalise on these market conditions, it’s essential to understand what today’s tenants value most. Below, we explore key property features and how regulatory changes may influence landlord strategies in the near future.

1. Parking spaces

With many professionals transitioning back to in-office roles, convenient parking is increasingly important. Properties with off-street parking or dedicated spaces hold strong appeal, particularly in urban centres where street parking is scarce or restricted. This is  in the context in which 68% of tenants are working full-time, with only 6% of tenants being part-time workers or students (15%)*. Offering secure parking not only improves marketability but also justifies higher rental premiums. Landlords should also be aware of the growing demand for electric vehicle (EV) charging facilities—an upgrade worth considering to future-proof your investment.

2. Pet-friendly policies

The demand for pet-friendly rentals has surged, driven by higher pet ownership since the pandemic. Traditionally, many landlords avoided allowing pets due to concerns about potential damage. However, the Renters' Rights Bill, part of the UK Government’s commitment to strengthening tenant rights, includes provisions that will make it easier for tenants to request permission to keep pets. While landlords retain the right to require pet insurance, adopting a proactive pet-friendly approach now can position your property as highly desirable. By accommodating tenants with pets, you’ll access a broader pool of applicants and encourage longer tenancies, which can reduce turnover costs.

3. Furnished properties

Furnished rental properties remain attractive, particularly to young professionals and students who may relocate frequently. Offering high-quality, durable furnishings can set your property apart from unfurnished competitors. To balance upfront costs with durability, invest in furniture that combines modern design with robust materials. Keep in mind that well-furnished properties can command higher rents, making it a profitable investment.

4. Energy efficiency and sustainability

Energy efficiency is a major factor for tenants in 2025, particularly as concerns about heating costs remain despite a decline from 2023 price peaks. Highlighting your property’s energy-saving features, such as modern insulation, efficient boilers, and double glazing, can attract tenants keen to manage their energy bills.

The Renters' Rights Bill also intersects with energy efficiency standards. While it primarily focuses on tenant protections and abolishing Section 21 "no-fault" evictions, the wider regulatory push for improving rental standards continues. Properties with low Energy Performance Certificate (EPC) ratings may soon face stricter compliance measures. Investing in upgrades now—such as insulating loft spaces or adding smart thermostats—positions your property as both cost-effective for tenants and future-proof against regulatory changes.

5. Modern amenities and connectivity

Fast, reliable internet and smart home technology are increasingly seen as basic expectations rather than luxuries. Many tenants now work from home at least part-time, making high-speed broadband a necessity. Consider partnerships with internet providers to offer attractive connectivity packages. Smart features such as programmable lighting, keyless entry systems, and energy monitors add perceived value and convenience.

6. Compliance with provisions set out in the Renters' Rights Bill

Understanding and preparing for the full implications of the Renters' Rights Bill is critical for landlords. Being proactive about compliance will protect your investment and enhance your reputation as a responsible landlord. Offering a well-maintained property, ensuring fair lease agreements, and adhering to proposed dispute resolution mechanisms are all strategies to stay ahead.

In spite of existing challenges, the rental market continues to presents excellent opportunities, but success requires balancing profitability with tenant-centric approaches and regulatory awareness. By investing in property features that align with tenant priorities and preparing for legislative changes, you can maximise your returns while offering a positive rental experience.

If you're considering purchasing your first buy-to-let or expanding your portfolio, contact our lettings client services team. Our property experts can help you navigate the evolving market and secure the right investment.

*Goodlord, State of the Industry Report, 2024