Derby & Burton Landlords: Turning Market Shifts into Smart Gains in 2025
Despite rising costs and upcoming reforms, the rental markets in Derby and Burton-on-Trent are full of opportunity. With rents at record highs and tenant demand still strong, 2025 could be a standout year for landlords - if you play it smart. Here’s what you need to know to stay ahead.
Derby & Burton Landlords: Why 2025 Still Holds Real Promise
If you’re a landlord in Derby or Burton-on-Trent, it might feel like the ground is shifting beneath your feet. Reforms, rising costs, and tenant expectations are changing the game—but here’s the good news: the fundamentals still point in your favour.
Yes, being a landlord in 2025 is more complex than it was five years ago. But in both Derby and Burton-on-Trent, those who stay in the market, stay informed, and stay strategic are finding plenty to be optimistic about.
Let’s explore why.
Rents Are Up. So Is Demand.
Over the past five years, average monthly rents have risen sharply:
In Burton-on-Trent, average rent has climbed from £648 in 2020 to £881 in 2025 - a 36% rise.
In Derby, average rent has grown from £671 to £882 over the same period - a 31% increase.
These are strong gains, particularly in comparison to national figures. And while the pace of rent growth is expected to moderate this year, forecasts still suggest a healthy 3–4% rise across 2025.
Both towns remain more affordable than larger neighbouring cities, which continues to attract a reliable pool of tenants—particularly families and young professionals seeking good value without compromising on connectivity or lifestyle.
Stock Levels Are Up - But Demand Still Wins
Interestingly, Derby and Burton are bucking the national trend on rental supply. Both areas have seen an increase in monthly listings since 2020. In 2025, Derby is averaging 608 new rental listings each month; Burton, 134. Bear in mind these figures are not just NEW rental properties hitting the market for the first time, they include rental properties that are being relet as the tenant has moved on too.
Yet despite this, demand continues to outstrip supply. Void periods remain low, particularly for well-maintained homes in desirable locations.
The result? Multiple enquiries per property, especially during peak seasons (typically late spring and early autumn). Properties in good condition and priced sensibly are letting quickly—often after the first viewing.
Market Challenges? Yes. But Also Manageable.
It would be naïve to ignore the challenges. From tax changes to compliance demands, the environment has certainly toughened. But that doesn’t mean profitability is off the table.
Here’s a snapshot of what landlords are facing—and how to work with it:
1. Legislative Reform
The Renters’ Rights Bill remains front of mind. The abolition of Section 21, greater tenant protections, and shifts to rolling tenancies are forcing all landlords - especially self-managing ones - to rethink their approach.
At Cope & Co., we believe the solution isn’t fear - it’s preparation. With the right processes in place, these changes are navigable. For many landlords, moving to a managed service will become not just convenient, but essential for maintaining compliance and peace of mind.
2. Cost Pressures
Higher mortgage rates, rising maintenance costs, and reduced tax relief have certainly squeezed margins. But we’re also seeing interest rates beginning to soften, and rental growth is helping to offset the strain—particularly for landlords who bought at lower borrowing rates or own outright.
Landlords who focus on quality - of both property and management - are seeing the highest returns, with fewer voids, fewer arrears, and better long-term tenant relationships.
3. Tenant Expectations
Tenants now expect more: better insulation, modern finishes, and reliable broadband are often non-negotiables. This isn’t a negative - it’s a blueprint. Meeting these expectations not only justifies higher rents but supports tenant retention, which is becoming increasingly valuable under rolling tenancies.
The Opportunity: More Reward for the Right Approach
So, what’s in it for landlords who choose to stay in?
✅ Improved Yields
Thanks to rising rents, yields in both Derby and Burton-on-Trent are now at their strongest point in over a decade. Even landlords with mortgages are seeing competitive returns, while those without debt are enjoying impressive profitability.
✅ Reduced Competition
With some landlords exiting the market due to regulatory pressures, those who remain benefit from less competition. There’s also scope to expand - whether that’s acquiring tenanted properties or capitalising on new developments in high-demand areas.
✅ A Stronger Market for Managed Landlords
Self-managing is becoming increasingly risky. The data is clear: rent arrears are notably lower on managed properties (under 2%) versus self-managed ones (around 5 - 6%). Professional management isn’t just about convenience - it’s a financial buffer.
Landlords, Your Strategy Matters More Than Ever
What 2025 is teaching us is this: being a landlord today requires a sharper strategy - but the rewards are still there for those willing to adapt.
In both Derby and Burton-on-Trent, long-term rental prospects remain strong. There’s still strong demand. Still rising rents. Still tenants looking for homes just like yours. But the way you operate must evolve with the times.
Whether that means upgrading your property, revisiting your pricing, or switching to a letting agent who truly understands the current landscape - there’s never been a better time to take stock of your portfolio.
Let’s Talk About Your Next Move
At Cope & Co., we work with both portfolio landlords and self-managing landlords across Derby and Burton-on-Trent. Whether you’re navigating regulation, thinking about selling, or looking to expand - we can help you make informed, confident decisions.
Ready to rethink your strategy? We’re here to offer straight-talking advice with no pressure.
