Rightmove’s latest lettings report brings together data from over 70 million listings and feedback from more than 4,000 landlords, agents, and tenants. While the report is designed with agents in mind, there are several key takeaways for landlords across the East Midlands.
The Market Landscape
- After five turbulent years, including pandemic disruptions and changing regulations, 64% of landlords now find the market more challenging.
- Despite this, the sector remains resilient: over 70% of landlords intend to maintain or grow their portfolios in the next 12 months.
- The three main landlord priorities are:
- Reliable tenants and avoiding voids
- Keeping properties well-maintained
- Staying compliant with regulations
Rental Trends
- Since 2020, average advertised rents have increased by more than £400 per month nationally.
- Growth has slowed compared with the sharp rises of 2021–22. As of mid-2025, rents are still rising but at a slower rate (+3.9% year-on-year in June 2025).
- More rental stock is coming back to the market, helping to balance supply and demand.
East Midlands Focus
- In the East Midlands, demand has eased slightly, with 14% fewer rental enquiries compared to last year.
- At the same time, available rental listings are up 16%, meaning tenants have more choice than in previous years.
- This balance is starting to reduce the extreme levels of competition seen in 2022–23, when properties often received over 20 enquiries each.
Landlord Sentiment
- One in three landlords are actively considering selling up, with frustrations driven by:
- Increasing regulation (68%)
- Reduced profitability and higher running costs (60%)
- Changes in tax rules (47%)
- At the same time, there are positive signals: new buy-to-let lending has risen by 17% nationally, with a 28% increase in loans for newly purchased rental homes.
Regulation & Awareness
- Only 43% of landlords are aware of the Renters’ Rights Bill, and understanding of its impact remains low, particularly among accidental landlords and those with one or two properties.
- EPC requirements remain a significant challenge, with many properties still needing upgrades to meet future standards.
Arrears & Financial Pressures
- 45% of landlords have experienced rental arrears, and nearly a third of those cases led to losses of over £1,000.
- Many arrears cases take more than six months to resolve.
- Yet, only 28% of landlords currently have rent guarantee insurance, suggesting that a large number remain financially exposed.
What This Means for East Midlands Landlords
- Demand remains healthy, but more balanced: while enquiries have dropped, this reduces excessive competition and may help stabilise rent growth.
- With rental listings rising in the East Midlands (+16% year-on-year), landlords face greater competition to attract tenants, making property quality, maintenance and pricing more important than ever.
- Staying on top of regulatory changes, particularly the Renters’ Rights Bill and EPC upgrades, will be crucial to remain compliant and protect investments.
- Managing arrears risk is increasingly important, with rent guarantee insurance and strong tenant referencing offering added protection.
Overall Outlook:
According to the report, the East Midlands rental market remains strong but is entering a more balanced phase. Landlords who focus on tenant stability, property standards, and compliance will be best placed to succeed in the year ahead.