As a property owner, the next few years will likely change how you manage your rental units. New energy rules, increasing rental costs, and shifting tenant expectations are changing the landscape, and you need to be prepared.

According to the Office for National Statistics, average private rents in the UK rose by 6.7% in the year before June 2025, now reaching £1,344. This marks the sixth month of falling annual inflation, suggesting that the rental market could be entering a new phase.

Whether you’ve been a property owner for a long time or are new to the rental market, you will need to adjust your management strategies in the coming years.

Curious about what’s ahead? Let’s look at the key changes and what landlords should expect as we approach 2026.

Energy Efficiency and the New EPC Regulations

By 2028, every rental property in England and Wales must reach a minimum Energy Performance Certificate (EPC) rating of C. This is a significant change from the current rule, which requires at least an EPC rating of E.

This update is part of the government’s effort to improve energy efficiency in homes, reduce carbon emissions, and ensure that tenants live in comfortable places.

Currently, around 58% of privately rented properties have an EPC rating below C. This creates challenges for numerous landlords who need to meet the new regulations. For property owners, this means investing in better insulation, heating systems, and other energy-saving features.

Talking about the current and upcoming changes a spokesperson from City Borough Housing Lambeth commented:

“Landlords today need to think beyond collecting rent. With new energy regulations and rising tenant expectations, landlords are under more pressure than ever to deliver on maintenance, compliance, and overall property standards.”

While these improvements can be expensive, they are crucial for your property’s future. They will help you avoid fines and make your rental property more appealing to tenants who want energy-efficient homes.

Acting instantly to make these changes will give landlords a better opportunity to comply with the new rules.

The Rising Rent Gap and Affordability Challenges

Rental prices in the UK are going up, especially in cities like London, Manchester, and Birmingham. In 2025, the rental market is expected to stay competitive due to limited housing and high demand near transport links, amenities, and business areas.

However, the rising rental costs are affecting what tenants can afford. Many renters are struggling with the higher cost of living, made worse by inflation and fixed wages. As rents increase, more renters find it difficult to keep up, creating a growing rent gap; the difference between what tenants can pay and what landlords want.

Recent data from Savills found that typical households renting in the UK are expected to spend 35.3% of their income on rent in 2025. This shows that renting is becoming less affordable.

This creates a problem for landlords. While raising rents may seem appealing, ignoring what tenants can afford might result in longer vacancy periods, as tenants look for cheaper options. Landlords must balance maximising rental income with keeping their properties available to different types of tenants.

Market trends show that properties with good energy ratings, modern features, and prime locations can charge higher rent. Still, property owners must understand that raising rent without considering affordability could fast tenants to seek more affordable options.

Increased Tenant Rights and What It Means for Landlords

In recent years, tenant rights have become a very hot topic in the UK rental market. The government is making changes to improve protections for tenants, meaning landlords will have to adjust to new rules.

One major change is the Renters’ Reform Bill. This bill will stop landlords from using Section 21 “no-fault” evictions. Now, landlords can no longer evict tenants without any valid reasons. They will need to follow a legal process to evict tenants who don’t pay rent or break the rules of their lease. This is good news for renters but creates problems for landlords who relied on Section 21 to take back their properties.

Landlords will also need to pay more attention to tenant concerns and maintain their properties well. As tenants expect better living conditions, landlords should respond quickly to maintenance issues, conduct regular property inspections, and follow safety regulations, such as gas and electrical checks.

Additionally, landlords should be aware that many renters prefer more extended leasing agreements. Tenants are looking for stability and security, so offering longer leases can help attract and keep good tenants.

Managing Rental Property in 2025 and Beyond

As rental laws, tenant rights, and rising rents become more complex, property owners need to adopt a proactive approach to managing their properties. It is essential to stay well-informed about changing regulations, communicate openly with tenants, and make improvements to the property to remain competitive.

Here are some suggestions for property owners who want to make their rental units more sustainable:

1.    Invest in Energy Efficiency

Start making energy-saving updates now to meet the new EPC standards. This could mean installing energy-efficient appliances, improving insulation, and updating heating systems.

2.    Understand Tenant Expectations

Tenants are becoming more influential in the rental market. Ensure you maintain your properties well and consider offering longer lease agreements for tenant stability.

Tenants are spending on décoration and energy efficiency upgrades to make their rental spaces feel more like home.

3.    Stay Compliant

Familiarise yourself with the new Renters’ Reform Bill and upcoming regulations. Be prepared to adapt to changes in tenant rights and eviction processes.

4.    Evaluate Rent Pricing

Consider what tenants can afford when setting rent prices. Keep your rents fair and competitive to attract more potential tenants.

5.    Use Professional Services

Real estate managers and legal experts can help you stay updated on legal changes and improve how you manage your properties.

Conclusion

As we near 2026, the rental market is changing instantly due to new energy efficiency laws, growing rent inequality, and changing expectations from tenants.

For landlords, success depends on understanding these changes. This includes staying updated on legal and financial problems, improving properties, and using tenant-friendly practices.

By anticipating these changes and adjusting strategies, landlords can stay competitive and thrive in a more complex market. Although challenges lie ahead, having the right approach will help you handle them effectively and achieve lasting success in the rental market.