The implementation of the Renters’ Rights Act 2025 is prompting many residential landlords to reconsider how they generate reliable, long-term income from their property portfolios.
The first phase of the reforms came into force in England on 1 May 2026, introducing some of the most significant changes to the private rented sector in decades. These include the abolition of Section 21 evictions, the transition towards assured periodic tenancies and new restrictions governing how and when residential rents can be increased.
Against this changing regulatory backdrop, landlords are increasingly looking beyond residential rent to identify additional income that can be generated from their existing properties.
For a small proportion of suitably located buildings and land, outdoor advertising may provide such an opportunity.
A New Income Stream From Existing Property
A prominent exterior wall, roadside boundary or unused section of land could potentially accommodate an advertising billboard.
Where a location is commercially and operationally viable, an advertising operator may lease the relevant part of the property from its owner. The owner can then receive an agreed rental payment while continuing to use or let the remainder of the property in the usual way.
This can create a separate income stream that is not directly connected to:
- Residential rent increases
- Tenant turnover
- Occupancy levels
- Residential tenancy renewals
- Day-to-day management of the accommodation
In practical terms, the advertising operator becomes an additional commercial occupier of a small, defined part of the property.
Why Additional Income Is Becoming More Important
Residential landlords have faced a combination of higher borrowing costs, increased maintenance expenses, changing taxation and greater regulatory responsibility.
The Renters’ Rights Act has added further considerations.
Since 1 May 2026, landlords can generally increase rent only once per year, must provide at least two months’ notice using the prescribed process and may face a challenge where a proposed increase exceeds the open-market rent.
Section 21 “no-fault” evictions have also been abolished, with landlords now needing to rely on an appropriate legal ground when seeking possession of a property. Existing assured shorthold tenancies largely converted into assured periodic tenancies when the new regime commenced.
The reforms are intended to improve security and standards for tenants. However, they also mean property owners must plan their finances within a more structured rental framework.
A separately contracted billboard rental payment may help some landlords diversify their property income without purchasing another property or increasing the rent paid by their residential tenants.
How a Billboard Agreement Can Work
Subject to the individual property and the terms agreed, an outdoor advertising arrangement may involve an operator taking responsibility for:
- Assessing the commercial potential of the location
- Reviewing the planning position
- Applying for advertisement consent
- Designing the proposed display
- Constructing and installing the billboard
- Maintaining the advertising structure
- Managing relationships with advertisers
- Paying an agreed rent to the property owner
The owner would not normally be responsible for selling advertising campaigns or managing the billboard itself.
The structure, rental payment and length of agreement will depend on the property, format, planning position and anticipated advertising demand. Owners should therefore be cautious of generic valuations made without a proper assessment of the location.
Classic or Digital Advertising?
Not every potential advertising location needs to accommodate a digital screen.
A traditional poster billboard may be more appropriate where:
- The location has strong visibility but more limited electrical infrastructure
- A digital display would be unsuitable for the surrounding area
- Planning considerations favour a non-illuminated format
- The potential advertising revenue would not justify digital development costs
- The property is positioned within a strong local advertising market
Digital displays may offer greater flexibility and advertising capacity, but they can also require more substantial investment, electrical connections and additional planning consideration.
PSL assesses the location before determining which format, if any, is most commercially appropriate.
What Makes a Property Suitable?
Only a limited proportion of submitted properties will support a commercially viable advertising display.
The strongest opportunities commonly have:
- Clear visibility from a busy road
- A suitable gable-end or exterior wall
- Regular vehicle or pedestrian traffic
- Sufficient viewing distance
- Limited obstruction from trees or other buildings
- Safe access for construction and maintenance
- A realistic prospect of securing advertisement consent
- Demand from outdoor advertising operators and advertisers
Properties close to junctions, traffic lights, town centres, commuter routes, retail areas and major roads can be particularly attractive.
However, traffic volume alone does not determine viability. The direction of travel, viewing angle, surrounding environment, planning history and physical construction requirements must all be considered.
Could Billboard Income Support the Wider Property?
Where an advertising location is suitable, the additional rental income could be used to:
- Contribute towards mortgage payments
- Fund repairs and maintenance
- Improve the residential accommodation
- Offset periods of increased operating costs
- Support investment in additional properties
- Strengthen the overall income generated by the asset
The main benefit is that the income is created from part of the property that may otherwise produce no commercial return.
The residential tenant can continue occupying the accommodation, while the advertising agreement relates separately to an exterior wall or clearly defined section of land.
Important Considerations for Landlords
A billboard agreement is a long-term property commitment and should be reviewed carefully.
Owners should understand:
- The proposed annual rent
- The agreement length
- Any rent-review provisions
- Who is responsible for planning and construction costs
- Access rights granted to the operator
- Maintenance and structural responsibilities
- Electricity arrangements for digital displays
- What happens when the agreement expires
- Whether lender or superior-landlord consent is required
- How the proposal may affect tenants or neighbouring properties
Landlords should obtain appropriate legal and tax advice before entering into a binding agreement.
An advertising site must also receive the necessary planning consent and comply with applicable safety, amenity and operational requirements. Submission of a property does not guarantee that permission can be secured or that the location will be commercially viable.
Request a Free Initial Site Assessment
Poster Site Locations works with landlords and property owners throughout the UK to identify potentially valuable outdoor advertising locations.
We can assess:
- Residential gable-end walls
- Commercial and mixed-use buildings
- Roadside land
- Car parks and forecourts
- Existing billboard structures
- Former advertising sites
- Properties with historic advertising consent
To review a potential site, PSL will normally require the full property address together with clear photographs showing the wall or land, the surrounding road and the view available to approaching traffic.
Following an initial assessment, we can advise whether the location appears to have realistic advertising potential and explain the possible next steps.
As the economics of residential property ownership continue to change, a suitable billboard location could provide an additional source of dependable, long-term income from an asset the landlord already owns.
Contact Poster Site Locations today to request a free initial assessment of your property.