The UK property rental market is undergoing rapid change. With interest rates rising, energy efficiency requirements tightening, and profit margins narrowing, landlords are under growing pressure. But instead of cutting corners, smart landlords are cutting costs — strategically.

At Neon Property Services, we work closely with landlords to identify ways to protect and grow their returns. Here’s how you can potentially save £3,000–£10,000 a year (or more) by making targeted improvements in 2025:


1. 🏦 Optimise Your Mortgage: Save Up to £4,000/Year

The opportunity: Over 1.4 million UK landlords have fixed-rate buy-to-let mortgages, many of which are expiring in 2024–2026. With average mortgage rates jumping from 2% in 2021 to around 5.5–6.5% in 2025, your repayment costs may have doubled.

Example:

  • A £200,000 interest-only buy-to-let mortgage at 6% = £12,000/year
  • Refinancing to 4.5% = £9,000/year
  • Annual saving: £3,000

What to do: Don’t auto-renew with your current lender. Use a specialist broker to compare deals from across the market — and consider whether a tracker or variable deal may offer flexibility in a falling rate environment.

👉 Neon Tip: Our trusted mortgage partners help landlords re-evaluate finance options annually to avoid unnecessary costs.


2. 💡 Make Your Property More Energy Efficient: Save Up to £1,200/Year

The opportunity: In an era of high energy bills and environmentally conscious tenants, energy efficiency isn’t just nice to have — it’s a necessity.

Government data shows:

  • The average tenant in an EPC D-rated property pays £540/year more in energy bills than someone in a C-rated one.
  • Properties rated below EPC C may be banned from new rentals in the coming years under proposed legislation.

Cost-effective upgrades:

  • LED lighting: Save ~£200/year in a 3-bed home
  • Draught-proofing & insulation: Save ~£400/year
  • Smart thermostats and timers: Improve heating efficiency by up to 20%

Bonus: These upgrades increase tenant retention and reduce void periods — saving you more in the long run.

👉 Neon Tip: We offer discounted energy assessments and can coordinate upgrades through certified tradespeople.


3. 📄 Maximise Tax Efficiency: Save £1,000–£3,000/Year

The opportunity: Many landlords miss out on tax-deductible expenses or under-report their property-related costs.

You can claim for:

  • Letting agent fees
  • Repairs & maintenance (but not improvements)
  • Council tax (during void periods)
  • Landlord insurance
  • Travel to and from the property
  • Legal and accountancy fees

Example:
Claiming just an extra £5,000 in allowable expenses at the 40% tax rate saves you £2,000 in income tax.

New challenges in 2025:
With the removal of mortgage interest relief and stricter Making Tax Digital requirements, the tax landscape is more complex than ever.

👉 Neon Tip: We can introduce you to accountants who specialise in property — so you never miss a deductible.


4. 🛠 Improve Management Efficiency: Save Time & Reduce Risk

The opportunity: Self-managing may seem cheaper, but it often results in hidden costs, legal risks, and lower tenant satisfaction.

Consider the following:

  • Average cost of a void period = £1,000/month
  • Fines for non-compliance (e.g. missed gas safety checks) = £6,000+
  • Time spent chasing rent, handling repairs, legal updates = 10+ hours/month

By using a trusted property management company, landlords often reduce tenant turnover and avoid costly compliance mistakes — improving net profitability.

👉 Neon Tip: Our full-service management includes tenant screening, 24/7 maintenance handling, legal compliance, and more — at transparent rates.


📈 The Bottom Line: Small Changes, Big Results

When you add up the potential savings from mortgage restructuring, energy efficiency, tax planning, and better property management, landlords can realistically save £5,000 to £10,000+ per property per year.

At Neon Property Services, our goal is simple: to help landlords earn more while doing less. Whether you're a hands-on investor or a hands-off landlord, we tailor our services to your goals.


👋 Ready to Reclaim Your Rental Profits?

Get in touch today for a no-obligation consultation. We'll assess your property’s current performance and show you exactly where you're overspending — and how we can help.