How Rising Costs and Inflation Are Impacting Landlords in 2025 — and How to Stay in Control

Circle Doors
Aug 26
3 min read

Inflation has returned to the spotlight, as the UK rate surged to 3.8% in July. While this may seem like just another statistic, it has tangible effects for landlords, impacting everything from rising mortgage payments to higher maintenance expenses and tighter tenant budgets.

So, what implications does this have for you, and how can you safeguard your property business?

1. Higher Mortgage and Finance Costs

For many landlords, mortgages are the biggest outgoing. Rising inflation often pushes interest rates up, which means:

Variable and tracker mortgages get more expensive almost immediately.
Buy-to-let remortgages are pricier, making it harder to refinance profitably.
Portfolio expansion slows down, as transaction costs climb.

If you purchased at low interest rates a few years ago, the shock of refinancing in today’s climate can be significant.

2. Rising Maintenance and Service Expenses

Inflation doesn’t just hit mortgages. It creeps into almost every aspect of running a property business:

Repairs and materials cost more — from replacing a boiler to painting a flat.
Tradespeople and contractors are charging higher rates to cover their own rising costs.
Insurance premiums are climbing, adding another line to already stretched budgets.

For landlords managing HMOs or larger portfolios, the increase can add thousands of pounds annually.

3. Tenant Pressures and Rental Market Strain

Inflation affects tenants, too. When everyday expenses — food, travel, energy — rise, tenants have less disposable income. The risks are clear:

Arrears become more common as tenants struggle to keep up.
Rent increases are harder to justify if tenants can’t afford them, even when landlord costs rise.
Tenant turnover may increase as people downsize or move back with family to cut costs.

Balancing fair rents with financial sustainability is becoming one of the biggest challenges for landlords in 2025.

4. Long-Term Impact on Landlord Strategy

Rising costs don’t just affect cash flow — they influence the bigger picture:

Some landlords may exit the market, selling up due to squeezed profits.
Others may shift strategies — moving from single lets to HMOs or serviced accommodation to boost yields.
Taxation changes (like the proposed Stamp Duty and council tax reform) could reshape decisions even further.

In short, inflation isn’t just about paying more — it’s about rethinking how you run your property business.

5. How Landlords Can Stay in Control

While landlords can’t control inflation, there are ways to manage its impact:

Stress-test your portfolio: Run the numbers assuming higher mortgage rates and increased costs.
Review suppliers and contractors: Shop around to avoid unnecessary overpayments.
Plan rent reviews carefully: Balance increases with tenant affordability to reduce arrears risk.
Keep a cash buffer: Set aside funds for unexpected costs to avoid dipping into personal finances.

6. Using Tools to Manage Costs — Why Notion Helps

One of the best defences against inflation is visibility. The more clearly you can see your income and expenses, the easier it is to make smart decisions. That’s where the Circle Doors Notion Property Management Dashboard comes in.

With the dashboard, landlords can:

Track expenses in real time, so you know exactly where costs are climbing.
Log maintenance jobs and compare spending year on year.
Monitor rent payments and quickly flag arrears before they spiral.
View a portfolio snapshot — so you can see true profitability, even when costs rise.

Instead of juggling spreadsheets or chasing receipts, you get a clear overview of your property finances in one simple, customisable dashboard.

Conclusion

Inflation is a challenge for everyone, but landlords face a unique squeeze — higher costs on one side, and limited room to raise rents on the other. The key to staying profitable isn’t just cutting costs, but managing them smartly.

By staying organised, planning ahead, and using tools like a property management dashboard, landlords can protect their portfolios and stay in control — even in uncertain times.

👉 Want to see how the Notion Dashboard works? https://circledoors.carrd.co — it could save you hours of admin and hundreds of pounds in missed costs.