Rising Living Costs & Tenant Expectations by Heather Hilder on March 11, 2025 Rising Living Costs How rising living costs are changing tenant expectations Rents continue to rise alongside increased costs for everything from food to energy. Let’s find out how rising living costs are changing tenant expectations. According to HomeLet’s latest rental index, all but two regions in the UK saw rent increases in February, with average rents now hitting £1,274 or £1,100 excluding London. Over the last twelve months to January 2025, rents increased 8.7% according to the Office for National Statistics. Such increases look set to continue, especially as the forthcoming Renters’ Rights Bill continues to push landlords out of the market, further limiting supply in an already high-demand market. Tenants have little choice but to pay the higher rents, despite the fact that they are increasing beyond their wage growth. However, the increased costs are leading to changing expectations as to what they will get for their money. This is accompanied by the knowledge that rules for landlords are changing, with increased living standards key. Tenants now expect more for their money. Demand for energy efficiency Energy efficiency has become a key expectation. Tenants know that an energy-efficient property will help to reduce their environmental impact and, more importantly in stretched financial times, also cut their costs. Energy efficiency is also a key target for landlords. The government is consulting on its plans to amend energy efficiency regulations for the private rented sector by raising minimum energy efficiency standards from the current E rating to C by 2030. The government also recently published a consultation on the future of Energy Performance Certificates (EPC). EPCs must be provided by landlords to tenants to show the energy efficiency of the property they are looking to rent. This will see increased transparency and insights into the energy efficiency of a property. A move to smart technology Smart technology in the home is also becoming a deciding factor when tenants are looking for properties to rent. Options such as smart meters can enable tenants to remotely control their heating when they are out, for example, linking back to their demands around energy efficiency as well as general comfort and convenience. Other options, such as home security solutions like smart doorbells and smart locks can also help tenants feel safer in the properties they rent. Flexible leases proposed The Renters’ Rights Bill will see the end of shorthold assured tenancies and a move to periodic tenancies. It allows greater flexibility and security of tenancy for those renting a property. Until it comes into force, however, tenants are likely to appreciate more flexible leases that allow them to adapt to changing circumstances. With pet ownership also being better supported through the Renters’ Rights Bill, tenants will have an increased expectation of being able to have pets without fuss ahead of the legislation coming into force. This provides a good opportunity for landlords to get ahead of the game by being more accommodating of pet ownership. The attractiveness of additional amenities Additional amenities can also win tenants over – whether it’s faster Wi-Fi or new and updated appliances. Tenant expectations are changing, and landlords should keep up. Callaways Letting Agents is here to support landlords within a 15 mile radius of Worthing, and Brighton & Hove. Contact us today to learn how we can help you adapt to new regulations and safeguard your investment. Reach out now for expert advice!
