LANDLORD TIMES
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June 2025
LANDLORDS NEED MORE TIME TO MEET MINIMUM ENERGY STANDARD
The government’s proposed 2030 deadline for all rental properties in the private sector (PRS) to attain an EPC rating of C won’t give landlords enough time to make the necessary improvements. Paragon Bank says the government should instead have a phased introduction of minimum energy standards for properties in the PRS. It suggests
2030 for new tenancies, 2033 for extended tenancies and 2035 for all tenancies.
The Department for Energy Security and Net Zero is currently consulting on proposed implementation dates of 2028 for new tenancies and 2030 for all tenancies.
Paragon says this timeframe is too short and could lead to landlords
exiting the sector, leading to a reduction in available stock, further exacerbating the supply and demand issue.
It also argues there is insufficient capacity in the retrofit supply chain and labour force, particularly with the government’s competing objective of building 1.5 million new homes over the next four years.
Approximately 60% of properties in the private rental sector across England and Wales are currently at EPC D or below according to Energy Performance of Buildings Data England and Wales. Data also shows 1.6 million properties would need to be upgraded annually to meet the 2030 target. This equates to retrofitting around 2,000 properties in the PRS per day per day to meet the 2030 deadline, or 4,000 to hit the 2028 deadline. In its survey by Pegasus Insights of nearly 900 landlords, Paragon found only 17% believe 2030 to be a reasonable deadline for completing EPC works. Nearly three quarters (73%) of landlords report tenant demand to remain strong, while Zoopla’s latest rental report found tenant demand is
79% above pre-pandemic levels, with available stock 22% lower.
In its consultation submission, Paragon wants a maximum investment cap for landlords of £10,000 and a seven-year exemption; the introduction of a range of financial measures, such as the Warm Homes Grant, to incentivise landlords to invest in their properties; ensure EPC reform is harmonised with the Energy Performance of Buildings regime; implement a complementary skills and training programme to address the retrofit and construction industry skills shortage; and consider the regional discrepancies in energyefficient properties, with the north and Midlands having a larger proportion of properties below EPC C compared to the south.
Paragon Bank’s managing director of mortgages, Louisa Sedgwick, said she supported the government’s net zero target and the need for strengthening policy and regulation but argued for a longer term approach.
She said: “Rushed legislation could cause significant disruption to a PRS that will already be adapting to the new Renter’s Right Bill, forcing some landlords to sell because they cannot complete works in time.
“Adopting a more considered and realistic timeframe will give landlords more capacity to adapt their properties, allow the retrofit supply chain and labour force to grow and ultimately, will be more beneficial for tenants.”
Renovations which cost landlords dear
Embarking on renovations which did not add value to their rental property is one of the biggest regrets of a landlord.
A survey commissioned by specialist property lender Together found 19% of buy-to-let investors regretted how much they had spent on renovations which did not increase the value of the property or increase their rental returns.
Other costly mistakes identified included selling up at the wrong time, holding on to a property for too long and not asking for a bigger deposit to cover the cost of any damage.
The survey of 1,000 landlords across the UK found 18% underestimated the level of wear and tear a tenant would have on the property and 16% said they didn’t realise how much maintenance and repair costs
would rack up. Just less than one in 10 (9%) said their most expensive mistake was allowing pets.
Other issues included wasting money by not screening tenants properly, buying too many properties, failing to account for the rising cost of professional services such as legal fees and property management, not investing in energy efficiency and buying their buy-to-lets in the wrong location.
Despite this 63% of those surveyed were positive about the sector in general and the proposed changes to improve energy performance on rental properties in particular. They were also generally supportive of the implementation of the Renters’ Rights Bill with 62% feeling positive about its effect on the sector.
Together’s chief commercial officer, Ryan Etchells said: “Although it
may be a slightly tougher market at the moment, our research shows professional investors’ appetites to buy up rental properties is far from dwindling.”
Sheldon Bosley Knight’s lettings manager Jo Egan said: “This survey should serve as a reminder to landlords to do their homework before spending their hard-earned money. Bottom lines are tight for many landlords at the moment so it pays to think about what you are spending your cash on, where and how, so you can avoid wasting time and money.
Having a good managing agent to help a landlord make those crucial decisions is a resource worth having. If any of our landlords would like advice or support on this issue, please do get in touch as we’d be happy to help.”
Landlord Forum success
More than 100 landlords in south Warwickshire have taken part in a focused industry meeting.
Organised by Warwick and Stratford district councils and the Landlord Steering Group, the Landlord Forum was a chance to listen to speakers including from the NRLA, RentR, Propertymark and Warwick district council.
There was also information on new local licensing arrangements for HMOs, how AI technology can be a valuable tool for buy-to-let investors and tips for self managing landlords as well as opportunities for networking.
Sheldon Bosley Knight lettings director Rebecca Dean was one of
the keynote speakers at the event which took place at the SYDNI Centre in Leamington.
She spoke about the importance of rent guarantee schemes. Although under no legal obligation to take out any form of insurance to protect themselves, Rebecca told delegates it is important for investors to cover themselves for loss of rent and other emergencies, especially during times of fiscal uncertainty.
With the changes to the private rental sector proposed by the Renters’ Rights Bill which is currently going through Parliament, she said it was important for landlords to have the added protection of such a scheme.
She said: “This is a challenging time for all those involved in the private rental sector, not least given the changes proposed within the Renters’ Rights Bill.
“A rent guarantee scheme is going to become more important when the Bill becomes law so I’d encourage all landlords to think about it.
“All the lettings teams at Sheldon Bosley Knight are here to help those who need advice or support in navigating their way through.”
The next event takes place at The SYDNI Centre on Wednesday, October 22 between 1.15pm and 4pm.
Rents and yields still on the up
Buy-to-let properties are generating the highest average rental yields since February 2011.
Figures from Paragon Bank’s lending data show landlords achieved average rental yields of 7.11% in April 2025. This is the highest level since February 2011, when the figure was just one basis point higher at 7.12%.
Following consecutive monthly increases during the first quarter of this year, the latest figure has exceeded the 6.94% recorded at the end of Q4 2024, which was then a 13-year high.
Paragon Bank’s mortgage offer data for buy-to-let purchase and remortgage show the latest rental income to property value ratio represents year-on-year growth of 40 basis points.
This reflects moderation of house price inflation alongside rent increases, driven by the continued supply and demand imbalance in
the private rental sector.
Over a longer term, an overall upward trend in average yields has been evident since the low of 4.91% of May 2017.
Paragon’s figures show average yields across the country were 8.43% in April 2025, up from 8.09% since December 2024. The West Midlands has rental yields of 7.52% and the East Midlands, 7.49%.
Meanwhile tenant demand increased in the three months to April according to the April RICS UK Residential Survey.
It represents a stronger trend compared to the stagnant picture seen in the previous quarter.
However the decline in new landlord instructions remains a stubborn feature of the market with the latest net balance of -26%, down from -19% in the previous survey.
As a result, a net +25% of property
professionals expect rent increases in the next three months.
Sheldon Bosley Knight’ associate director, Nik Kyriacou said: “As demand continues to grow and supply shrinks, there is no relief in sight for tenants when it comes to finding somewhere to live, nor with increasing rent levels.
“However, it does present an opportunity for landlords to take advantage of the situation.”
“However, it does present an opportunity for landlords to take advantage of the situation.
“We would encourage our investors to stick with the sector and continue to provide the housing needed to sustain the private rental sector.”
RRB could get royal assent this summer
The Renters’ Rights Bill could get royal assent this summer following its successful passage through the House of Lords.
The Bill completed its committee stage scrutiny in the Lords last month and will now make its way back to the Commons for the Report stage. After that is the Third Reading and a return to the Commons for consideration of amendments before receiving Royal Assent.
During the four weeks the Bill was scrutinised in the Lords, there were more than 30 hours of debate
and more than 300 amendments, all of which were rejected by the government.
The government only passed its own amendments, which it proposed at the third reading in the Commons: limits on advance rent; ombudsman fees; PRS database clarifications; restrictions on advance rental agreements for students; and protections for bereaved guarantors.
The Regulation of Property Agents (RoPA) will not be included in the Bill.
Sheldon Bosley Knight’s lettings director, Rebecca Dean said: “It’s very disappointing the amendments proposed were dismissed particularly over the assurances needed the court system is going to be equipped to deal with the increased demand following the Bill becoming law.
“We will continue to lobby MPs to ensure any changes are fair to both landlord and tenant.
“If any of our landlords would like advice or help in navigating some of the detail please do get in touch.”
More provision needed for older renters
Calls are being made for more housing for renters over the age of 65 and those living with disabilities or long-term health conditions.
Figures from Propertymark show there are now over 3 million people aged over 65 living in rental accommodation.
According to figures from the National Housing Federation, there were 867,000 households headed by people aged 55 and over who live in the private rented sector at the end of 2023.
This figure is 70% higher than in 2010/11 and compares with a 20% growth in households in this age
group overall.
Nearly half (48%) of private rented sector tenants aged 65 or over are in the bottom 20% of all household incomes.
Despite this only 3,300 new bungalows were built in 2022. For older people and those with mobility issues, the lack of available suitable housing is an issue Propertymark says needs addressing.
Sheldon Bosley Knight’s senior lettings manager and Propertymark ambassador, Josh Jones said: “With an aging population it’s no surprise more properties suitable for older
people or those with mobility issues will be needed.
“There is clearly a growing demand and little supply so it also represents a good opportunity for buy-to-let investors to think about expansion of their portfolios to plug this gap.
“It is also a good time to speak to house builders and government about how we can increase the supply of good quality private rental housing for those in this demographic so they don’t end up in unsuitable housing.
“As ever if any of our landlords would like advice or help in this area please get in touch.”
BTL investors looking to the Midlands for opportunities
Buy-to-let investors are increasingly looking to the Midlands for rental opportunities thanks to lower property prices, smaller stamp duty bills and higher rental yields.
A record 39% of all buy-to-lets bought in the first four months of this year were in the Midlands and northern areas of England. This is up from 34% in 2022 when interest rates began to rise and higher than the 24% recorded in 2007.
The figures, from Hamptons, come as overall investment in the private rental sector has fallen across the country. Only 10% of all homes sold in the UK in the first four months of this year were from investors. This is down from 11% last year.
The average investor buying in the Midlands and north of England paid
£150,480 for a new buy-to-let this year. This is £141,760 (or 49%) less than a landlord who bought in the south, where the average purchase price was £292,240. This price differential translates to a £11,190 savings on stamp duty.
Along with a general cooling of the market, rental growth is beginning to slow down, particularly for tenants renewing existing contracts. In April, 45% of landlords raised the rent on a renewal, down from a high of 50% in a year ago.
The average rent on a renewal in Great Britain reached £1,257 per calendar month in April, £44 (or 3.7%) more than the same month last year. However the pace of rental growth for renewed tenancies has slowed from a high of 9.2% in October 2023.
The average rent on a new let has increased 36% over the last five years.
Sheldon Bosley Knight’s lettings manager Claire Paginton said: “Rents and yields are generally healthy in the Midlands so it’s a great area for landlords and prospective landlords to invest.
“We are continuing to see many more tenants for each rental advertised and with this demand outstripping supply we are hoping landlords are encouraged to continue with their investments and potentially see this as an opportunity to add to their portfolios.
“If any of our landlords would like more information or advice please do not hesitate to get in touch.”
• Great investment opportunity
• Current rent value of £615 pcm
Longford Bridge Court, Union Place Gross yield of 8.2% £90,000
• Lease length - 107 years
• Communal gardens and parking
• Tenants in situ
• EPC - D
Drapers Fields, Coventry
• 71-year lease remaining
• Two-bedroom apartment in Canal Basin
• Close to city centre
• Available with tenants in situ or vacant possession
• Current rent value of £850 pcm
• EPC - C
Gross yield of 9.3% £110,000
The Hawthorn apartments
The Hawthorn apartments
Sheldon Bosley Knight is delighted to offer an off-market, exclusive opportunity of either individual plots or multiple unit discounted packages from developer Taylor Wimpey.
Ranging from one-bed apartments at 525 sqft to executive five-bedroom detached houses at 1,986 sqft, there is plenty to suit your investment needs.
> Locations include Hatton, Warwick, Gaydon, Nuneaton and Kersley.
> House types range from two-bedroom semi–detached, three-bedroom detached, four-bedroom detached and executive five-bedroom detached houses.
> Three blocks of apartments including one-bedroom apartments at 525 sq ft and two-bedroom apartments at 750 sq ft.
> House styles include the Gosford, the Byford, the Beauford, the Rossdale and the Lavenham.
> Multiple unit discounted packages available.
> Whole blocks available as single purchase.
> Potential for great yields.
*Discounts and
For more information please contact Nik Kyriacou and the New Homes Team on 01789 333 466
• 132 Year Lease Remaining
• Allocated parking space
• Master bedroom with en-suite
• Highly sought-after location
• Potential rent value of £895 pcm
• EPC - C
• Allocated parking space
• Ground floor apartment
• Modern and well presented
• Convenient location and close to town
•
Harlequin Court, Coventry
• 102 year lease remaining
• Two-bedroom flat in Cheylesmore
• Excellent public transport links
• Highly sought-after location
• Potential rent value of £800 pcm • EPC - C
• A charming and characterful terraced home
• Excellent central location
• Perfect for a first-time buyer or investor
• Kitchen with built-in/fitted appliances
• Current rent value of £825 pcm
• No onward chain
• EPC - D
£185,000
The Old Stables, High Street, Pershore
Quinton Parade, Coventry
• End-terraced family home
• EPC - E Poplar Road, Coventry
• Current rent value of £1,200 pcm
• Ground floor W/C and upstairs bathroom
• Prime Earlsdon location
• Finham Park and Earlsdon Primary catchment
• End-terraced family home
• No onward chain
• Popular residential location
• Fitted kitchen
• Mid-terraced house
• No onward chain
• Popular Coundon location
• Extended fitted kitchen
• Potential rent value of £1,250pcm
• EPC - D
• 28ft Lounge/Diner
• No onward chain
• Three bedroom family home
• Fitted kitchen
• Potential rent value of £1,250pcm
• EPC - C
Brookshaw Way, Coventry
Barkers Butts Lane, Coventry
• Development with two, six-bedroom apartments, four, four-bedroom apartments and two, three-bedroom apartments
• Modern fitted kitchenettes and bathrooms
• Excellent location for Warwick and Coventry Universities
• Current rent value of £243,480 pa, potentially rising to £257,400 pa
• Tenants in situ
• EPC - B Current gross yield of 9.7% £2,400,000
PART OF | SHELDON BOSLEY KNIGHT
Kensington Road, Earlsdon, Coventry Potential
• Beautifully presented six-bedroom property
• No onward chain
• Fantastic Earlsdon location
• Six en-suites
• £650-£675 pcm per room
• Great addition to portfolio
• EPC - C
Church Street, Leamington Spa
• Prominent mixed use property with return frontage
• Newly refurbished
• Prominent for passing traffic
• Class E business and commercial
• Estimated rent of £26,600 per annum
• 144.15 spm (1,550 sq ft)
• EPC - E
Gross yield of 5.6% £430,000
Haven Lodge
> Development of 35 studio apartments
> Modern fitted kitchenettes and bathrooms
> Highly sought-after location
> Allocated parking spaces
> Current rent value of £269,285.10 pa
> Tenants in situ
> EPC - B
Gross yield of 8% £3,250,000
• Development potential STPP
• Investment opportunity
• EPC - D Forest Road, Loughborough
• Current rent £20,000 per annum
• 255m2 (2,739.81 Sq Ft)
• Centrally located close to the town centre
Large Car park
LOCAL BRANCHES ACROSS THE MIDLANDS
