While buying to rent is a profitable source of income, it is not free of challenges. With the market continuously changing, if you own one or many rental properties, it's good to look ahead.

Gallagher, the NRLA’s trusted Landlord Insurance partner, has put together some key areas to focus on in 2025 and onwards to help protect your investment. 

Property-related issues to look out for in 2025

1. High operational costs

Looking after a property can be cost-intensive. Landlords often find themselves facing significant payments for basic maintenance and property upkeep. Those with multiple properties may also struggle with administrative duties that require ongoing attention.

To navigate this, it can be helpful to invest in property management tools that handle processes for tasks such as rent collection, service and repair costs, tenant screening, and property safety certificates. It can be a cost-effective way to keep on top of operational requirements.

2. Variable cash flow and delayed rent payments

Even with good financial planning, a lack of cash flow consistency can be stressful. A big cause of disrupted cash flow for landlords can be late rent payments.
 
To mitigate this, it can be helpful to prepare a detailed tenancy agreement that establishes the various rights and responsibilities of both parties. You may, for instance, include provisions that cover timely rent payments, notice periods, repairs and maintenance expectations. Take expert help and opinion while drafting the tenancy contract or agreement to ensure the arrangements are legally binding. A detailed tenancy agreement can also help you secure suitable landlord insurance for your property. 

3. Repairs and maintenance costs

Statistics from confused.com show that in 2023, over 85% of insurers in the UK had home insurance claims arising from storm damage, and nearly 21,700 insurers listed water damage as a leading cause behind claims. Almost every region in the UK had accidental damage listed in their top three claims.

There are other challenges too. The ONS reports that nearly 200,000 domestic burglaries occurred in the year ending March 2024, while over 25,000 dwelling fires in England alone were recorded between March 2023 and March 2024 by the Home Office.

Given these figures, it’s evident that the most common property damage issues landlords in the UK face are storm damage, water damage, accidental damage, malicious damage and fire damage. Landlords can rely on security deposits to cover losses incurred by damage caused by tenants; however, in many cases, the deposit alone can be insufficient. An English Private Landlord Survey found that almost one-tenth of the landlords stated that the repair costs at the end of their last tenancies exceeded the deposit amount.

Precautionary measures, such as regular maintenance of plumbing systems, appliances and HVAC units, could help to avoid expensive property damage. Additionally, the installation of fire safety equipment can help prevent costly fire damage, and regular inspections for water leaks, blocked gutters, and damaged window frames can help prevent storm or flood damage.

4. Void periods

Long periods of vacancy — ‘void periods’ — can disrupt your financial planning and cause stress. A common cause of this is high rent.

If void periods are a consistent problem, landlords may want to investigate the prices of other rental properties in the area to ensure the requested rent is still in line locally and not putting off potential tenants. Secondly, having a contingency budget in place can help with navigating periods of non-payment.

5. Impact of weather changes on property owners

In 2024, the UK has experienced severe weather extremes, ranging from frequent storms, heavy floods and prolonged heatwaves. The 2023-2024 storm season witnessed 12 named storms, with each causing significant damage to properties in the UK. 2023 was also the UK’s seventh wettest year since 1836. Storm Babet alone caused flooding in over 2,000 homes by the end of October 2023, as per reports by the Environment Agency. The past year was also the second warmest year on record, with several days recorded as ‘very hot’ (30°C+). 

Due to the unpredictable nature of these events, landlords should consider protecting their properties to avoid danger to life as well as expensive repairs.

As a starting point, ensure that the property’s insulation and ventilation systems are in order. Proper insulation and ventilation can help to regulate heat inside your house and keep the property well-guarded during extreme weather. In addition, arranging regular professional property inspections can highlight areas that need work.

Landlord insurance from Gallagher

With vast experience handling insurance policies for a wide range of landlords, and with relationships with some of the leading insurers, Gallagher aims to simplify your insurance arrangements and help to protect your property, its contents and your liabilities.

Alternatively, speak to the specialist Gallagher team on 0800 612 0094.
 

The sole purpose of this article is to provide information on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited and National Residential Landlords Association, an Introducer Appointed Representative of Arthur J. Gallagher Insurance Brokers Limited, accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

National Residential Landlords Association is an introduce appointed representative of Arthur J. Gallagher Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.

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