The rental market never stands still. For landlords and their tenants, It’s a space constantly evolving from rising rents to regulatory changes. The latest shift? Letting agents are experiencing 24% fewer enquiries on their available rental properties compared to this time last year, according to Zoopla.
So, what’s behind this drop in demand?
In January 2025, lenders changed the way that mortgages were assessed. Simply put, it became easier in many instances to borrow money in relation to the mortgage. As a result, many first-time buyers saw a 20% increase in borrowing capacity, giving them exactly what they needed to get onto the property ladder.
The outcome? This delivered a 30% surge in first-time buyer activity, as more people chose to buy rather than rent.
How does this continue to impact landlords?
This increase in first-time buyer purchases has directly affected demand in the rental market and with more renters turning into homeowners, landlords are facing:
- Fewer tenant enquiries than previously.
- Slightly more extended periods of time between tenancies.
- More competition between landlords listing their available properties.
So, what does this mean for advisers?
It’s a win-win! This market movement actually creates two strong opportunities for advisers:
- You can support a new wave of first-time buyers entering the market
With so many renters now ready (and able) to buy, advisers are in a position to add real value. First-time buyers often need guidance, reassurance, and someone who can make the mortgage process feel simple and stress-free.
- You can reconnect with your landlord clients as they asses their options
While first-time buyers are celebrating, landlords are doing a bit of strategic rethinking. Some may be: - Experiencing longer unoccupied periods
- Expanding their search areas or being more flexible with tenant types
- Considering changes to their portfolio focus
- Selling their properties
These changes can have real insurance implications, especially if a landlord’s property or tenant type has shifted. Some landlords may not think to check and update their insurance with a change of tenant, but it’s worth checking in, as some insurers have specific exclusions, they may not be aware of.
That’s why now’s the perfect time to reach out. Annual landlord insurance renewals are a great excuse to reconnect, add value, and make sure your clients are still properly protected.
Try opening the conversation with simple, open questions like:
- Have you changed your tenant type or how the property’s used recently?
- Are you thinking about selling or expanding your portfolio?
- Does your current cover still suit the property and its tenants?
A quick check-in can go a long way, so consider reviewing and reaching out to your back-book this quarter.
If you need support or want to discuss landlord insurance options, our Business Relationship Team is here to help.
- Call us on 02920 265 265
- Or email [email protected]
You can also explore landlord insurance options anytime at www.thesource.co.uk or log in via broker.thesource.co.uk.
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