What Landlords Should Expect in 2023

With the property market in so much flux lately, we have put together an overview of the potential challenges landlords face in 2023 and opportunities. The biggest change in the Private Rental Sector may be coming in the form of the Renters’ Reform Bill, which we will again summarise the key points.


Unpaid Rents

With the cost-of-living crisis in everyday news, it’s not surprising that many tenants may default on paying the rent. Wages are not keeping up with inflation and bills are also rising quickly. Good tenants don’t become bad tenants overnight; it is important to engage with them early on by being proactive. Prepare to be flexible to find a solution such as agreeing to a payment plan.

Changes to Capital Gains Tax

Many landlords may be thinking of selling up rather than continuing to rent. In this, you will have to plan for the upcoming changes to the capital gains tax. According to the recent autumn statement, it is anticipated that the tax-free allowance will decrease from £12,300 to £6,000. This will put time pressure on those who are keen to sell. You will need to weigh up whether you will make any profit or to wait for the property prices to recover before selling.

Interest Rate and Inflation

The fallout from Liz Truss’ premiership led to a spike in interest rates. This continues to impact buy-to-let landlords’ mortgages and whose product is expiring. Refinancing may be costly, and landlords may have to look for alternative ways to invest their money. The current inflation may also mean that landlords may have to consider increasing the rent to recover their costs.


Despite the challenging conditions, landlords who are ready will find opportunities.

Fall in House Prices

According to the latest news reports, experts believe that due to rising mortgage costs coupled with a higher cost of living in the UK, house prices will drop. Some forecast a fall in house prices anything between 5% and up to 30%. This creates a new opportunity for landlords who have finance available and get their hands on a new property.

Increase in Demand and Yield

Another opportunity is the demand for more rental properties. According to analysts, demand for properties is expected to remain high. Data from Rightmove reports, the demand for rental homes will show a hike of up to 23% in the coming year. Moreover, higher mortgage costs make buying even more difficult many, who may opt to hold off.

If the demand increase, this could be an opportunity for landlords looking for higher rental yield. This would be a welcome picture after the pandemic where rent level has been paused for possibly 3 years or more. Higher demand for rental properties means landlords could benefit from a wider choice of tenants.

Legislative changes – Renter’s Reform Bill

The ‘A fairer private rented sector’ white paper was published in June 2022, which is expected to usher in major changes. We have covered it extensively in this blog- Renters’ Reform White Paper 2022 – Do Not Panic but the main aspect to watch out for is the below:

Abolition of Section 21 – The plan is to scrap assured shorthold and shorthold tenancy to periodic tenancy from the start.

Decent Homes Standard (DHS) – Giving private landlords a benchmark for property standards that will go beyond mere safety.

Property Portal – A new digital portal to help landlords and tenants understand their responsibilities and for the council to monitor ‘poor practice’.

Housing Ombudsman – There will be a single ombudsman with whom all private landlords must register.

Others – There are other proposals such as a ban on ‘No DSS’, making it easier to rent with pets, and passporting deposits.

Relocating abroad? Looking for a safe pair of hands to entrust your property? We can help. Call us today on 02085885115 to discuss your requirements.