2025 has been a strong year for the rental market across the North East. Demand remained high throughout the year, with national portals consistently ranking the region as one of the best-performing rental markets in the country. Newcastle, in particular, continued to attract interest not only from UK-based investors but increasingly from nationwide and international buyers looking for reliable returns.
Rental yields remained stable this year, supported by strong demand and limited supply. Landlords who carried out small, targeted upgrades, painting, new flooring, refreshed bathrooms, saw noticeably stronger performance. Yield in 2025 wasn’t just about pricing; it was heavily influenced by property condition, presentation and the tenant experience.
Tenant expectations continued to evolve as more are seeing renting as a longer term option and due to this expectations around standards are increasing, Landlords who adapted to these preferences and have began improvements to their assets saw reduced void periods and longer tenancies at higher rents.
Compliance remained a major focus. With the Renters’ Rights Bill coming into force on 1st May 2026, landlords have been preparing for a significant shift in how tenancies are managed. Up-to-date safety certificates, strong property standards and clear documentation have become more important than ever.
Seasonal patterns held steady. Spring and summer remained the busiest periods, while autumn and winter delivered consistent; if steadier, levels of interest. Landlords who planned refurbishments or rent reviews around these cycles minimised voids and maximised annual returns.
Looking ahead to 2026, the most successful landlords will be those who plan early. With new legislation approaching and tenant expectations increasing, the single best way to retain tenants next year is to improve property standards, from presentation and energy efficiency to overall maintenance.
If you’d like to review your portfolio or prepare for the changes coming in 2026, our team is here to help you make informed, strategic decisions for the year ahead.