Five ways landlords can boost profits

“Inflation is up and interest rates have not caught up yet, so there is a window for people to take advantage of that now,” said Mr Armstrong. Landlords are betting that long-term house price growth will outstrip inflation.

2. Sell Victorian terraces

Landlords must grapple with energy efficiency on two fronts. First, rocketing utility bills are threatening tenants’ ability to pay their rent. Second, government plans to introduce a minimum band C Energy Performance Certificate requirement for newly let rentals by 2025 (and for all existing rentals by 2028) mean hefty upgrade bills are in the pipeline.

Adam Kingswood, of Kingswood Residential Investment Management, which manages a portfolio of 450 properties across Nottinghamshire, said: “We are seeing landlords capitalising on the high sales market now and getting rid of properties that they will have to spend tens of thousands of pounds to upgrade. 

“It is a perfect storm to sell. They plan to divest from the inefficient properties now and reinvest in more efficient properties later in the year when the market cools.” 

House prices in Nottingham are up 13pc year-on-year, said Mr Kingswood. He noted a dilapidated Victorian terrace property that came to auction with a guide price of £45,000 that sold for £120,000. “That was nearly three times its asking price, and the buyer had to factor in auction fees, the refurbishment and stamp duty,” said Mr Kingswood.

Victorian terraced properties – core buy-to-let housing stock – will be the hardest to upgrade as these do not have cavity walls, said Mr Kingswood. Many also have loft conversions that make insulation difficult.

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