What Does That Mean For Landlords in 2025?
It is a role which a lot of people dislike but one that a lot of people rely on for their housing.
The rental sector has, in the last ten years, become bigger in the UK, with over one-third of all properties in the UK being rented by private and social sector tenants. However, depending on where your rental properties are as a landlord, this can be more profitable or more challenging.
In Bath, the rental market is cooling, which means that in this stunning, historic city, landlords will need to change their tactics to attract and retain tenants and keep their income flowing.
So, if you are new to being a landlord, you have properties in Bath, and you want to know what this means for you, read on!
Lowered Rental Income
As any online estate agent will tell you, such as Zest Estate Agents, a cooling rental market means that you will no longer be able to charge top-of-the-market rent. This means that your income via renting in Bath will decline, which is not ideal if this is where all your properties are located.
Of course, the charges for having rental properties are also increasing, as mortgages and other operating costs go up. So, if you are in a tight pickle financially, it is well worth looking into your options with an estate agent.
Competition For Tenants
In the city of Bath, a cooling rental market will likely mean more vacancies and fewer renters. In short, tenants will have a lot of options to look at, which can also make it harder for landlords to fill vacant properties.
You could improve the features of your property or if possible, you should discuss offering incentives with your estate agents. This could be lower deposits or lower rents. In short, you need to sell both yourself as a landlord and the property together, rather than hoping tenants will just move in and stay long-term.
Longer Empty Periods
As mentioned earlier, a common side effect of a cooling period for landlords is that properties will stay empty for longer. This is not ideal if you are relying on the rental market as a source of income for your family. Longer vacant periods in properties will increase holding costs and reduce the yield of the property, as well as make you responsible for paying the council tax, the electric bill and so on.
Pressure About Property Management
It is a known fact that at some point in the life of a landlord, there will be an issue with one of their properties, such as problems with a boiler, electrical issues or even complications with the property’s roof.
With a cooling rental market and tenants being able to be pickier about where they live, you may notice that those who are renting your properties may be unhappy with responsiveness to emails, the maintenance of the surrounding grounds (if applicable) and the amenities. So, you will need to invest more in maintenance and offer higher-quality management as part of your rental package, or you may start to lose out on rent!
New Investment Strategy
You are likely a landlord to make money and to invest in properties to provide a nest egg for the future. As before, if there are slower periods of renting, this can impact the ROI of the property and on the length of the mortgage.
So, if you have concerns about not being able to cover the costs lost via properties in Bath, now may be the time to look into diversifying your investment portfolio, as well as considering sales of properties that are underperforming.
Steps To Take
Of course, if you are a landlord who rents properties in Bath, it is important not to panic at a cooling market.
It is salvageable and there are options you can take which can help you to stay in the area of property rental. You should aim to retain any good tenants that you have by offering them things such as flexible leases, competitive rents and fast response times to any issues that they may have with the property.
For any properties in your portfolio that are not being rented out, it can be worth upping the appeal via upgrades and maintenance. A lick of paint never hurt! If you have a lettings agent overseeing your properties, work with them and their marketing team to be proactive, and invest in high-quality photos of your available properties. Try, if you can, to list on multiple platforms, as this can up interest from potential tenants.
