It’s that time of year when we’re all wrapping up our final bits of admin and preparing for the year ahead. For landlords especially, these last few weeks of 2025 will likely demand a lot of strategising.
By now, we all know the challenges the rental market will face. Investors are going to have to contend with the fallout of the Autumn Budget, as well as the looming Renters’ Rights Act. As is to be expected, we’re likely to see more selling up in the opening months of 2026. But with every reaction in the property market, corresponding opportunities are created.
London, with its expensive property market, has already been beset by tax anxieties and stamp duty worries, according to Hamptons. Now, with a mansion tax on the way, the capital’s housing market may end up stagnating over the coming years.
But, should prices remain subdued or even decline, that creates opportunities for expanding landlords. Discounts may become available in a market that is still in high demand for rental hunters themselves.
Hiscox recently analysed search data and found that London is among the top trending cities for flat-hunters in the UK. In fact, London flat-hunters grew by 20,000 searches in the space of a year. Also, London occupied one of the top trending spots for people searching for houses to rent too.
Of course, London may still be too expensive for many landlords. Fortunately, there are also plenty of options for those in need of lower prices, with higher yields. The North of England continues to offer the best rental yield opportunities in the UK, according to Savills.
Additional analysis from Zoopla produced in Q3 found that Sunderland produced the highest average gross rental yield of 9.3% in the UK. The average price of a BTL property in this city was just £84,924.
Of course, after such a turbulent period in the rental market, many landlords may simply long for some stability. Fortunately, there are also hotspots that can be targeted for consistent, long-term income from content renters.
Stockport, for example, had the highest tenant satisfaction rate of 91% in mid-2025, followed closely by Bolsover at 87%. Manchester was also the most renter-heavy city outside of London, with 62% of households renting.
Many landlords will want to stay, and expand within the BTL market over the coming year, there will simply be differentiation in how they plan to proceed. The economic picture will force some to find cheaper options. For others, it will present a rare opportunity to splurge a little in a prime market. Whatever the plan though, the specialist lending market will be there to offer much needed support. We say bring on 2026 and all its opportunities.