There are more than 1.3 million households on housing waiting lists right now
This article was created in partnership with Chetwood Bank.
The rental market has been anything but predictable in 2025. Landlords have had to adapt swiftly, with some deciding that buy to let’s no longer for them and opting to leave the sector altogether.
But, according to Mil Consiglio, National Sales Manager at Chetwood Bank, the most defining trend of the year so far isn’t simply landlords “wanting to exit” - instead it’s something more structural.
“One of the biggest single market shifts we’ve seen is that many higher rate and top rate tax payers are deciding to sell up due to significant increase in service charges, specifically in London, which means many of them are unable to make money from a property they purchased,” he said.
This erosion of profitability, particularly in the capital, has driven a wave of reluctant sales, not speculative exits. But as the market prepares for the second half of the year, Consiglio sees new opportunities emerging, especially if the interest rate environment improves.
“I think there are a number of factors that will stimulate purchasing,” he added. “One is obviously a reduction in interest rates. Also, core demand remains strong. There are more than 1.3 million households on housing waiting lists1, the population of the UK is expected to grow up five million people within 10 years2 and landlords have nine people applying for every home that goes up for rent3.”
Executive HMOs
Demand pressure is giving rise to a new generation of landlord strategies, particularly in urban hubs like Manchester.
“The largest growth area is executive HMOs that offer serviced accommodation with en-suite and mini kitchens, etc.,” Consiglio explained. “We’re seeing a lot of landlords purchasing two-bed new build apartments, especially in Manchester, and offering these out on a serviced accommodation basis.”
This shift reflects a more sophisticated investor class looking to extract greater yield from shrinking margins.
“Landlords are becoming much more sophisticated when it comes to extracting as much money as possible,” he added. “You could have a 10 storey MUFB with each unit being a five bed mandatory HMO all rented out as serviced short-term accommodation.”
With competition intensifying and affordability tightening, lenders may need to re-evaluate criteria to keep pace. However, another looming challenge may come not from the Bank of England or lenders, but from Westminster.
Balancing risk with long-term value
“Obviously, the major talking point is the Renters’ Rights Bill,” added Consiglio. “However, there are a number of delays and other issues that are taking the time on the floor in both the Commons and Lords, and I think it could be put back. The other big one is now the closed consultation period for the implementation of the potential requirement to improve the EPC regulations of buy to let. This is one of the biggest singles heading towards landlords and could cause the biggest change in portfolio sizes in the future.”
As the market moves into the second half of the year, landlords face a familiar but intensifying challenge: balancing risk with long-term value. Consiglio remains cautiously optimistic. The fundamentals of housing demand remain strong - and for those able to adapt, opportunity is still within reach.
For Consiglio, confidence is the missing ingredient. And with possible rate cuts in the future, delayed legislation and an evolving tenant market, that confidence may soon return.
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