Private renting is changing – but that’s not always a bad thing

For some months now we have been saying that the market is rebalancing and against everything that is written in the media we have been showing you how the market is evolving – and for landlords who are ready to adapt, there are real opportunities.

Agreed, some landlords are choosing to leave the sector, but this isn’t just a reaction to regulation or bad press. Many are doing so for very personal, practical reasons:  retirement, changing family circumstances, or simply wanting to cash in on decades of growth. In many cases, it’s the natural next step.

All this means is that the landlord profile is shifting. The market is becoming more professional, with fewer “accidental landlords” and more investors focused on doing it properly – and profitably.

Why are some landlords selling up?

There’s no denying the sector has become more complicated. Regulation is increasing – from EPC targets to the Renters’ Reform Bill – and managing properties isn’t as straightforward as it once was. For landlords who entered the market in the ’90s or early 2000s, many are now retiring or passing properties to children who may not want to take them on. Some inherited portfolios are split between siblings, which often makes holding onto them more trouble than it’s worth. At the same time, buy-to-let economics have shifted. Mortgage rates have risen, and tax changes mean the returns just aren’t what they used to be, especially for smaller landlords with higher leverage.

That’s the rebalancing

As some landlords exit, we have seen others step in. Professional landlords, property companies, and well-capitalised investors are still buying and they’re doing it with a long-term mindset: focusing on quality homes, strong management, and sustainable returns. We have been seeing this in the portfolios we manage for landlords that do not want owning property to take away time from the day job. Demand for quality rental homes remains incredibly strong. Even before properties are fully refurbished, we have good residents who want to move into a larger property as the family grows and those that want less space.

What does this mean for landlords like you?

I feel the shift presents an opportunity. For landlords who are prepared to have their properties managed professionally whilst others stay ahead of regulation changes for them. The days of “set and forget” lettings might be behind us but that doesn’t mean the PRS is no longer viable. Far from it. It simply means landlords need to be more strategic and better supported. We don’t believe the market is shrinking – we believe it’s maturing and that’s a good thing for landlords who take their role seriously. We’re here to help navigate the changes – whether you’re staying in for the long haul, or reviewing your options. That is why we use all of the data we hold to share with you what is actually happening in our local area.

Makeup of available properties

Spread of bedrooms in the area (information from ML data).

There has been no dramatic change to the split of bedrooms in the area that we cover (map above).

Our data shows two-bed homes dominate the local rental stock. However, as per last month’s figures noticing a gradual increase in 3 and 4 beds, which opens opportunities for owners in this segment to attract a broader demographic.

Stock levels

What’s on the market?

Data from Rightmove for July shows a 16% increase in available properties though out the local area we cover compared to July 2024. Which is on par with the number we saw in June. As there is more choice on the market compared with last year it is critical that your property has standout marketing, accurate pricing, and quality presentation. This means that homes are taking longer to let and are more likely to be reduced in price as applicant choice increases.

Rightmove has recently reported that it is taking an average of 25 days for a rental home to be marked let agreed. This is up from 21 days last year and 18 days during the pandemic frenzy at this time in 2022. Pricing correctly from the outset is key, and being quick to adjust price in line with market response helps avoid unnecessary void periods.

Activity in the market

Based upon the area we service, Rightmove have indicated that there were 163 properties let in July – a 16% increase YoY and higher than last month which is expected as we go into the busiest period for rentals.

A big take out was there were no negotiations about the rental price. Although we did come across two applicants that offered higher than the asking price. Which is always a red flag as far as we are concerned – we did not continue with their application! With regard to pricing  we always review condition, location, and market conditions before we remarket – so you price right from day one and avoid rental delays.

Resident demand – is it still high?

As you can see from the graph below, we saw a huge change in the number of applicants looking for properties last year. July Figures show us that we are on parr with demand still outstripping supply.

Each new property we marketed in July received five applicants on average; however, some applicants are less qualified as we receive their initial application. This is because we are dealing with less initial enquires so have the chance to talk to people and find out their preferences in order to match them with the right property. With the coming Renters Rights Bill, we have already put into place more pre-qualification questions to ask applicants so although the filtering process is taking longer, we are able to be more selective on the applicants we take to view a property and therefore can spend more time with them in the first instance.

In answer to the question ‘why do people choose to rent’ you only need to look at the alternative. The cost of getting a mortgage on an average house in the area is now £1,136 per month (at 4.6% on 25-year loan ) against an average monthly rental cost of £1,151 but also means if the boiler goes the landlord will pay for a new one! This means that private renters spent 34% of their income on rent according to a recent report from the English Housing Survey. They have also reported that the cost of rent is making it incredibly difficult to build a deposit. Younger renters face a mountain to climb paying the rent each month – and on average, private renters aged 16 to 24 spent half (50%) their income on rent.  

Rental trends – local breakdown (by area and beds)

We use real-time local data to give you an edge. This is why our rent reviews for your presidents are always backed by evidence – not guesswork.

Average monthly rents for July 2025 across key postcodes

Why all the data?

Knowing where your property sits in the market means we can maximise your returns and time your decisions smartly.

Why work with the Maxine Lester team?

We are specialists – not salespeople – and have 20 years of dedicated lettings experience across Cambridgeshire. Our proactive, data-backed approach means:

• Fewer voids
• Stronger residents
• 
Better returns
• 
Ongoing compliance
• We don’t wait for problems – we anticipate them and act, so you don’t have to.

Let’s talk strategy

The market is shifting – and there are real gains for owners who are proactive right now.

Book a free portfolio review or rental appraisal today with our expert team.
 Click here to schedule your call or call us on 01480 494939