"The era of passive property management is behind us. In today’s more discerning market, landlords must stay informed and adaptable"
- Yasmin Ulhaq - Glenfield Property Management
As of June 2025, London’s rental market remains dynamic and highly competitive. Average monthly rents have climbed to approximately £2,246, an 8.4 per cent increase over the past year, according to the Office for National Statistics. Flats now command an average of £2,265 per month.
These figures highlight the importance for landlords to refine their approach and stay proactive in managing their properties.
Recent data from Foxtons reveals a five per cent rise in rental property supply during April, while tenant registrations dropped by three per cent month-on-month and now sit five per cent lower than this time last year.
Areas like Westminster have seen particularly sharp rent hikes, driven by renewed interest in city living after the pandemic. However, an ongoing mismatch between supply and demand continues to push prices up. Meanwhile, regulatory pressures and market uncertainties are prompting some landlords to exit - 26 per cent reportedly sold at least one property in the last year, and a third are considering leaving the sector within the next five years.
In Central London, demand remains relatively steady, while South and East London are seeing more noticeable softening.
This shift isn’t a decline, it’s a market recalibration. Landlords who want to remain competitive must adapt thoughtfully. Here are four key strategies to consider:
1. Price Strategically
Foxtons notes that 64 per cent of applicants are choosing properties below their stated budget. Overpricing can lead to extended vacancy periods, so pricing properties realistically (aligned with current market conditions) helps attract tenants faster and encourages longer leases.
2. Prioritise Presentation
With tenants having more options, well-presented homes stand out. Even small enhancements like a lick of fresh paint, updated fixtures, professional cleaning or improved staging can significantly boost appeal and rental value.
3. Stay Flexible
The number of applicants per property has dropped 14.3 per cent year-on-year. Flexibility around rent, lease terms, or move-in dates can give landlords a crucial advantage in attracting dependable tenants quickly.
4. Reassess Yield with a Long-Term View
Although the market is adjusting, average rents remain three per cent above last year’s figures. Now is a good time to evaluate property performance, expenses and income goals to ensure long-term profitability and sustainability.
The era of passive property management is behind us. In today’s more discerning market, landlords must stay informed and adaptable. Regular portfolio reviews, strong tenant relations and responsive pricing strategies are now essential tools for success.
Looking ahead, analysts forecast a potential 20 per cent increase in rents over the next five years, fuelled by ongoing supply constraints and strong tenant demand.
However, the forthcoming Renters’ Rights Bill, which is anticipated to become law in the summer of 2025, will likely expand tenant protections and could further influence landlord engagement.
At Glenfield Property Management, we support landlords in navigating these changes, whether it’s through strategic pricing, reducing vacancy periods or tailoring property improvement plans. A complimentary, no-obligation property review could reveal valuable opportunities to enhance performance and maintain a competitive edge.
