2025 could be a defining year for the rental market, and not just for tenants but for landlords too.
The much discussed, often maligned Renters’ Rights Bill is set to pass through Parliament this summer, and as it does so it seems that many landlords are reconsidering their place in the sector.
But for others, for those willing to adapt or those who treat the letting of property as a profession, this moment represents a golden opportunity.
Here in Ipswich, the potential for well-run HMOs (Houses in Multiple Occupation) has never been greater.
Lettings Market Changes Bring Opportunity
Rental demand is increasing – and fast. According to recent ONS figures, average monthly rents in Ipswich are up nearly 10% year-on-year, seeing a jump from an average of £871 in April 2024 to £957 in April 2025.
This kind of growth is representative of the national trend, with rents across the UK up by around a third over the past five years alone, underlying increases of between 2–4% annually.
At the same time, bricks-and-mortar property prices in Ipswich, whilst having risen, still remain far more accessible than many areas. An average home costs around £224,000 to purchase (ONS, March 2025), which means that a buyer purchasing here enjoys a much lower barrier to entry compared to locations like Oxford or Cambridge, both of which are a similar distance from London, with similar train journey times into the capital (roughly an hour).
For Ipswich landlords, it means higher yields, stronger cashflow, and more potential for long-term returns. At the same time, tenants don’t experience anywhere near the levels of rent that tenants in those higher value areas do; Oxford’s average rent for example is £1,832 by comparison to Ipswich’s £957 (ONS, March 2025).
The Role of HMOs in a Changing Rental Landscape
HMOs offer landlords higher rental income than standard single-family lets; but they also serve an essential role in the local housing ecosystem. They offer affordable, flexible living arrangements for young professionals, key workers and students alike.
Ipswich has a strong need for HMO properties due to the make up of our local population, with strong employment – particularly in the services sector – as well as high numbers of students and key-workers.
As such, it has an abundance of HMO properties, and even an abundance of those that claim to be ‘high end HMOs’ – but a survey of the tenants that live in them across the town might tell a different story…
From our point of view, and the message we want landlords to take away, is that regardless of face value there is very much a shortage of genuinely high-quality HMO properties – and that’s where the opportunity lies.
At LEA Property Solutions, we’ve seen first-hand how well-maintained, thoughtfully designed HMOs really do fill quickly and command stronger rents, especially when they offer modern amenities like en-suites to all bedrooms, fast internet, and smart, well maintained and regularly-cleaned communal spaces. A rushed job, skimping on quality fittings and furnishings and sloppy decoration shouldn’t cut it – and those types of rentals (and those types of landlords and agents) are being found out.
Lettings Regulation that is both carrot and stick
Some landlords are nervous about the Renters’ Rights Bill, but in truth, it simply raises the bar, and realistically it also rewards those who are already doing things properly.
When we break down the proposed legislation, working its way through its final parliamentary stages at the moment, we see that the proposed reforms are rooted in improving standards and stability for tenants. Now, that is something that most serious landlords support.
After all, a stable tenant in a well-maintained property benefits everyone; it reduces voids, improves cashflow, and enhances the long-term value of the property as an asset. Again, for professional, business-minded landlords perhaps more so than amateur or accidental landlords, these things matter.
We also see much talk of ‘amateur’ landlords leaving the sector, as I have written about previously (see article here). Whether through retirement or disillusionment, or perhaps undue and irrational fear about what is coming, many smaller-scale landlords may well exit. But that creates space for those more serious, business-minded operators to step in.
And the best place to start is by offering quality accommodation that meets not just today’s standards, but tomorrow’s.
HMOs, Licensing and Local Knowledge
Of course, not every property is or should be an HMO. In Ipswich, you’ll need a licence for any property let to five or more tenants from two or more households. And since 2024, parts of the town are subject to Article 4 direction, which means planning permission is required to convert a property into an HMO.
That’s where local expertise matters.
At LEA Property Solutions, we specialise in helping landlords navigate the HMO landscape, from identifying suitable properties and refurbishing them to a high standard, to managing day-to-day operations with minimal hassle.
Our highly experienced team knows the local regulations, tenant expectations, and the financial modelling that makes an HMO work.
We are also part of the HMO Network that gives us access to national statistics and trends data, not to mention the opportunity to share ideas with other professional HMO agents.
A professional future for a changing sector
It’s true: lettings and property management is becoming more regulated, and it is probably fair to say, it is becoming more demanding, too.
But it is also becoming more professional – and whilst there may be some cost to landlords to straighten certain things out in the short term, in the longer term it will also become more profitable for those who embrace the change, minimise void periods and provide the type of quality accommodation that tenants are willing to pay better rental prices for.
With rising rents and strong demand, there is a clear need for much better quality shared accommodation in Ipswich. HMOs remain one of the most attractive investment strategies available when done properly, especially here in a market where lower entry costs and high commuter appeal, university town status and a strong service-sector combine.
If you’re a landlord who’s thinking long term, who values reliable cashflow, and who believes in delivering decent homes for tenants, then this is your moment: take it!