Rising Turnover: What’s Next for the Lettings Industry in 2025?

As we move deeper into 2025, the combination of Rental Reform legislation, shifting migration patterns, and economic uncertainty is starting to redefine the landscape of the UK’s private rental market. For London letting agents, these trends point to one clear reality: tenancy turnover is set to rise—and stay elevated.

While change often brings challenges, it also presents smart agents with new ways to streamline operations, offer value-added services, and monetise each tenancy lifecycle.

Let’s unpack what’s happening and what agents should prepare for next.

🔄 What’s Driving the Shift in Tenancy Turnover?

1️⃣ The Renters (Reform) Bill – Periodic Tenancies Become the Norm

The abolition of fixed-term contracts means all tenancies will become periodic by default, giving tenants the right to end their agreement with just two months’ notice, at any time of year.

✅ This increases tenant flexibility

❌ But it removes predictability for agents and landlords

Instead of the classic summer rush, agents can expect a more evenly distributed flow of tenancy start and end dates, requiring systems that can scale and flex all year round.

2️⃣ Decreased Net Migration, But Changing Demographics

While overall immigration numbers are forecast to decline from the 2023 record highs, student migration is on the rise—particularly from India, Nigeria, and Southeast Asia.

• 🎓 More international students means higher demand for shorter-term tenancies and frequent turnover, especially in Zones 1–3 of London.

• 🧳 Meanwhile, a noticeable trend of entrepreneurs and high-net-worth individuals relocating out of the UK could result in more available stock, but also increased volatility in higher-end lets.

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3️⃣ Economic Uncertainty and Cost of Living Pressures

With inflation easing but rents remaining historically high, we’re seeing:

• 🏠 More renters sharing properties or moving frequently to find better deals

• 💸 Landlords opting for shorter leases due to policy concerns or preparing to sell

• 📉 A slower sales market keeping accidental landlords active—but cautious

Combined, these factors are likely to keep tenant churn high, particularly among young professionals, students, and low-income renters.

📈 Forecast: What Does This Mean for Letting Agents?

Based on these patterns, here’s what we expect to see in the next 12–18 months:

Trend	Forecast Impact
Periodic tenancies	15–25% increase in mid-year tenant moves
Higher student population	Increased demand for term-time inventory services
Exit of business landlords	More temporary or short-cycle tenancies
Rent affordability pressures	Increase in shared tenancies & turnover due to downsizing
Higher compliance expectations	Stronger demand for documentation & inventory protection

For agencies, this means:

✅ More check-ins, check-outs, and mid-terms

✅ Less seasonal predictability

✅ A need to scale operations without compromising compliance

💡 Turning Turnover into Opportunity: What Smart Agents Can Do

1. Automate and Outsource Inventory ManagementUse trusted partners (like Pro Property London) to handle inspections, so your in-house team can focus on growing your portfolio and servicing clients.

2. Build All-Inclusive Landlord PackagesBundle inventory reports, compliance checks, cleaning, and key handling into one “turnover-ready” service—priced per exit or tenancy change.

3. Monetise Supplier NetworksPartner with utilities, cleaners, maintenance providers, removals, and furniture rental companies. Each tenant change is a chance to earn referral fees.

4. Track and Report on Tenancy ChurnOffer landlords insights into their tenancy turnover patterns—and how your agency is protecting them through professional reporting and fast transitions.

📍 How Pro Property London Can Help

We’re already working with agents across all London zones to support year-round turnover with:

✅ Legally compliant inventory reports

✅ Fast check-in/check-out inspections

✅ Mid-term tenancy health checks

✅ Digital delivery, high-res photo reports, and timestamped evidence

✅ Reliable access across Greater London

As change accelerates, documentation and compliance are your insurance policy.

🚀 Get Ready for the New Rental Normal

Whether your tenants give notice in July, January, or right before Christmas, we’ll be there to support your lettings team.

📞 Call us: 02038663808]

🌐 Visit: www.propropertylondon.co.uk