Being a landlord in the UK has never been straightforward, but in 2025 the role carries both fresh challenges and new opportunities. With the Renters’ Rights Bill edging closer to becoming law and administrative expectations increasing, many landlords and letting agents are wondering what the future holds for their portfolios. The good news is that the fundamentals of the private rented sector remain remarkably robust. In fact, the latest data suggests landlords still have plenty of reason to feel confident about long-term returns.

Yields Holding Firm at a Decade High

According to Pegasus Insight’s Landlord Trends report for Q2 2025, average rental yields are currently at 6.5%—a level not seen since the third quarter of 2024, and one that represents a 10-year high. For seasoned landlords, this is a reassuring reminder that the fundamentals of property investment continue to deliver, even against a backdrop of regulatory and financial change.

What’s especially noteworthy is the regional picture. The North West, North East and East Midlands are leading the charge, with yields consistently above 7%. These areas remain particularly attractive for investors balancing affordability with strong rental demand. Meanwhile, yields in London, though lower at 6.1%, remain stable, reflecting both high property values and ongoing tenant demand in the capital.

This balance of regional strength underscores an important point: landlords who diversify across regions or who look beyond the South East may continue to find opportunities for strong growth and dependable returns.

Profitability Remains Resilient

Alongside encouraging yield figures, the report highlights the overall resilience of landlord profitability. A full 87% of landlords state they are currently making a profit, with 21% describing their returns as “large” and a further 66% reporting “small” but consistent profits. Only a small minority, 5%, reported losses.

For a sector that has weathered rising borrowing costs, shifting tax rules, and the fallout of wider economic uncertainty, this is a striking result. It shows that, even under pressure, the private rented sector is capable of sustaining income for the majority of landlords.

For letting agents, this is equally significant: a healthy landlord base translates into a stable flow of business, tenant demand and property management opportunities.

The Renters’ Rights Bill: Challenge or Opportunity?

Of course, yields and profits don’t tell the full story. The legislative environment is changing rapidly, and the Renters’ Rights Bill represents the most significant reform to the private rented sector in a generation. Expected to receive Royal Assent before the end of September, the bill is intended to strengthen tenant protections and rebalance relationships between landlords and renters.

Yet, despite its importance, only 14% of landlords say they fully understand the details of the bill. This knowledge gap matters, because legislation of this scale will inevitably reshape portfolio strategies, tenancy agreements, and the ways landlords manage compliance.

Some landlords may view this uncertainty as a reason to reduce exposure or step away from the sector. However, as industry experts such as Pegasus Insight’s Bethan Cooke note, high yields are “a clear signal of the enduring strength of the private rented sector.” In other words, the fundamentals—tenant demand, limited housing supply, and the income-generating nature of property—remain solid.

The landlords best placed to thrive will be those who treat the next 12 months as a period of strategic adjustment: reviewing portfolios, optimising financing arrangements, and ensuring compliance processes are streamlined.

Looking Beyond the Headlines

It’s easy to focus on the risks posed by regulatory change, but that misses the bigger picture. The UK continues to experience strong tenant demand, fuelled by demographic changes, affordability challenges in the sales market, and ongoing urbanisation. For many households, renting remains the most flexible and practical housing option.

This underlying demand underpins landlord confidence. When combined with yields at a decade high, it’s clear the sector still offers significant opportunity for those willing to adapt. For letting agents, the same principle applies: positioning as a trusted, efficient partner to landlords will remain a winning strategy.

Why Efficiency Matters More Than Ever

While profitability is strong, the biggest pressure point for landlords isn’t necessarily financial—it’s administrative. New regulations add layers of compliance, record-keeping, and communication requirements. Left unmanaged, these tasks quickly erode the time landlords and agents could otherwise spend on strategy, growth, or tenant relationships.

That’s where togetha comes in. By automating routine admin, simplifying communication, and providing smart financial insights, togetha enables landlords and agents to focus on what really matters: maximising returns and building sustainable portfolios.

Our platform is designed to save landlords and agents up to 20 hours per week on administrative tasks. That’s not just time saved; it’s capacity gained—capacity to review your portfolio in light of new regulations, to explore growth opportunities in high-yield regions, and to strengthen tenant relationships.

Optimising for the Future

Another key feature of togetha is its ability to provide personalised financial recommendations. Whether it’s identifying underperforming assets, highlighting refinancing opportunities, or flagging areas where efficiency can be improved, togetha offers the insights you need to adapt with confidence.

In a period where yields are high but the policy environment is shifting, that kind of proactive intelligence can make all the difference. Rather than reacting to changes, landlords using togetha can anticipate and plan, turning uncertainty into opportunity.

The Bottom Line

The message for landlords and lettings agents is clear: despite new regulations and evolving expectations, the private rented sector remains a strong, profitable place to invest. Yields are at their highest in a decade, profitability is widespread, and tenant demand shows no sign of abating.

Yes, the Renters’ Rights Bill introduces complexity. But complexity doesn’t equal collapse. With the right tools and strategies, landlords can continue to generate strong returns and safeguard their portfolios for the long term.

At togetha, we’re here to support that journey. We believe property should remain one of the most rewarding investments you can make—and with our platform, it can also be one of the most efficient. Book your free 20 minute demo of togetha today, and let us help you make the most of your investment.