Ten years ago, no one could’ve predicted the way the rental market has shaped up in recent years. But right now, we have more intel than ever about what innovations are taking UK property management by storm, and what policies renters are aligning themselves with for the future.
From flexible tenancies to digital conveniences, there are several trends and innovations emerging in the rental market, with some preferences driven by tenant finances, and others simply by a changing world.
In this guide, we’ll share our take on the future of renting: summarising the latest trends and innovations we’re seeing in the rental market right now, and sharing what these could mean for landlords in the modern age.
Emerging trends in the rental market: What’s new and what’s trending?
Continuous government reforms (with more to follow), alongside shifts in tenant preferences, have changed the rental market.
Today, we’re seeing moves towards flexible tenancies (rather than long-term leases), a focus on energy efficiency, and shifts towards more automation in property management.
We’re also seeing a growth of purpose-built rentals (like build-to-rent schemes) and co-living spaces. Read about each element in detail below.
1. Increased demand for flexible tenancies
In the tenant world, more people are seeking shorter and more adaptable lease terms to respond to continuous lifestyle changes, from work relocations to new, remote working needs.
A recent Goodlord survey pins the figures at almost 30% of tenants preferring open-ended agreements with 4-12 weeks’ notice. Many tenants still prefer a fixed-term tenancy agreement (almost 60%), but the demand for more flexible arrangements isn’t small.
Plus, this change is aligned with the Renters Rights Bill, where fixed-term tenancies will be abolished, instead moving to rolling, periodic tenancies that renew monthly (and can usually be ended with 2 months’ notice).
2. Focus on energy efficiency and sustainability
It isn’t just the government focusing on energy efficiency (with mandates for a minimum EPC rating of C in rented properties from 2030), it’s tenants.
Rising energy costs coupled with a growing environmental awareness are leaving tenants more attracted to properties with better EPC ratings.
Recent surveys highlight some particularly interesting insights for landlords to be aware of, including:
- Almost 80% of tenants prefer properties with high energy efficiency ratings to reduce utility bills
- Almost 60% of renters would be willing to pay higher rent for a more energy-efficient home
- Over 70% of tenants consider energy efficiency as a key factor when deciding whether to renew their lease
With further reports suggesting tenants could save between £300 to £700 per year on energy bills from a more efficient property, tenants are weighing up the figures and finding what works for them.
3. Technological advancements in property management
Advancements in technology plateaued for business this decade – until recent years, when everything has shifted. Since the 2020 COVID pandemic, things have changed for both landlords and tenants.
Virtual viewings are expanding access to properties for nationwide tenants, while augmented reality allows landlords to showcase refurbishment properties before they’re finished.
Digital lease agreements, online rent collection services, and AI-powered tenant screening systems are transforming how landlords and tenants interact – often saving landlords’ money and time.
Even smart home technology is finding its place in rented properties. From smart thermostats to better security systems, landlords are gaining greater control of all-inclusive tenancies and better managing security risks.
With estimates of 44% of UK property owners not offering tech or digital tools in their rentals, and 73% of tenants agreeing that advanced technology plays a significant role in their decision to rent, investing in tech can both attract tenants and help landlords stand out.
4. Growth of purpose-built rentals (or build-to-rent)
Build-to-rent (or BTR) developments are gaining popularity, with recent estimates positioning the growth at up to 287,000 BTR homes across the UK, namely in big cities (like Manchester, Leeds, and Birmingham).
These developments offer professional management, shared amenities, and community-focused living. With a range of home sizes on-site, renters can more easily move between smaller and larger properties.
5. Rise in co-living spaces
Shared housing solutions are appealing to young professionals and students looking for affordable, social living arrangements.
With rising costs across the board – from rent to energy bills – tenants are finding that shared housing keeps them able to live in the big cities.
It isn’t just young people searching for co-living spaces either – despite it being the viewpoint among many landlords that HMOs mostly appeal to young students or working professionals.
A recent survey finds that over 11% of tenants aged 40+ are living in shared housing, with the majority living in Southampton, London, Leeds, Manchester, Coventry, Birmingham, Plymouth, Reading, and Oxford.
Innovations shaping the rental experience: How are landlords innovating?
Focusing on the innovations shaping the rental experience, there is a range of new, up-and-coming ways to manage a rental property. These new technologies are particularly beneficial to landlords, but they can also provide a better, more sought-after experience to tenants.
The key innovations include:
- Smart home technology integration: Features like smart locks, thermostats, and energy monitoring systems are becoming key differentiators for modern rentals. Tenants like the convenience and control on offer, and some are even willing to pay more rent for it.
- Digital-first property management: Online platforms are streamlining processes such as rent collection, maintenance requests, and legal compliance – making life easier for landlords and giving busy tenants the digital conveniences they want.
- Virtual and augmented reality tours: Virtual property viewings are growing in popularity, especially among long-distance renters, making the rental process more convenient – with many landlords enjoying the ease and pace of digitalisation.
Changing tenant preferences: What do tenants want from landlords?
Nothing ever stays the same, and tenant preferences are no different. Some changes are driven by external factors and finances, while others are driven solely by changes in personal preferences.
The key aspects tenants want from landlords include:
- Work-from-home-friendly properties: Properties with dedicated workspaces, strong internet connectivity, and quiet environments are in higher demand, particularly those with access to outdoor space.
- Amenities and community features: Tenants are prioritising properties with gyms, green spaces, and communal areas for a better quality of life and an all-in-one living solution.
- Digital communications: Time is precious for tenants, and the digitalisation of rent payments, general reminders, maintenance tracking, inventories, and issue-reporting makes life easier.
- Pet-friendly rentals: As pet ownership increases, landlords offering pet-friendly accommodations stand out in the market.
- Efficiency: From their energy bills to their general living costs, tenants want efficiency, leading to a growing interest in co-living spaces and energy-efficient buildings that can lower monthly costs.
Opportunities for landlords: Where do landlords go from here?
Every change might not be welcomed in the landlord community, but all change brings opportunities. Landlords can respond to the emerging trends in several ways, including the following:
- Differentiate through unique offerings: By providing tailored solutions like flexible leasing, furnished units, smart features, or energy-efficient upgrades to attract specific tenant groups.
- Adopt proptech solutions: Embracing property management software and maintenance automation to stay competitive, save time, and connect with tenants in ways they increasingly want.
- Stay ahead of regulatory changes: Things are changing, and landlords need to stay informed about upcoming legislation to ensure compliance and avoid potential fines or disputes.
FAQs
Why are landlords struggling?
Not all landlords are struggling, but when you look at nationwide stats, it’s clear that there are major issues facing some UK property owners.
Mandatory changes and rising costs are the biggest cause of disruption in the rental market, which is leading some landlords to change strategy, re-align themselves to meet current needs, or exit the market entirely.
Specifically, rising interest rates on mortgages, growing investment costs (including to fund new regulations), and high property maintenance costs are affecting many landlords’ bottom lines.
How can landlords navigate changes?
Adapting is key. Landlords have more responsibilities, so simplifying procedures and managing time effectively is something many landlords are prioritising to continue their success.
Digitalising services via property management software is saving time and helping landlords plan ahead. Even taxation changes can be managed through proptech, with receipts, income, and expenses easily tracked and reported.
Responding to what tenants want can also help, from offering more smart home systems to building flexibility into long-term living environments, through things like flexible leases and bespoke policies.
Is it still worth being a landlord right now?
Every landlord – like every business owner – should continuously analyse the bottom line and make business-minded decisions on their next steps.
For some landlords, leaving the market is the best decision, while for others, adapting is best. Some landlords aren’t affected at all by recent and upcoming changes, and can simply continue their successful course.
There are ups and downs to being a landlord, but many figures still report a growing demand for rentals in the coming years, coupled with rising rent costs that can help landlords stay profitable.
Read our in-depth guide on is buy-to-let still a good investment in 2025.
Things to remember: The future of renting
- New emerging trends in the rental market include increased demand for flexible tenancies, a focus on energy efficiency and technology, and a rise in purpose-built rentals and co-living spaces
- Some trends are location-dependent (like growing build-to-rent developments), while others are nationwide (like rising preferences for digitalisation), meaning not every change requires adaptation
- Technology use is potentially becoming a necessity, with many landlords finding it crucial for managing properties, while tenants are making rent decisions based on technological conveniences
- Tenant wants are changing and becoming clearer, with more focus on pet-friendly policies, working from home abilities, community accessibility, and efficiency in all aspects of renting
- Landlords who could benefit from changing course can consider differentiating to stand out, adopting proptech solutions, and staying ahead of new government mandates
Protect the environment. Reduce paper consumption and help save the trees as well as save money at the same time. 
