The UK rental market in 2025 is strong, but increasingly complex. While tenant demand remains high across most regions, affordability pressures are beginning to shape tenant expectations and behaviour.
For landlords, this means the pressure is on to set rent at just the right level — not too high to deter interest or cause turnover, and not so low that you lose out on income. With the right approach, you can attract great tenants quickly and maintain a healthy yield, even in a competitive market.
This guide from Martin & Co outlines everything landlords need to know to price their rental property competitively and confidently in 2025.
Why rent pricing matters more than ever
Rent setting isn’t guesswork. Price is too high, and you risk longer voids or attracting fewer applicants. Price too low, and you could be undercutting your own returns — especially if costs like mortgage repayments, maintenance, and insurance are on the rise.
The goal is to hit the rental sweet spot: a price that reflects local market conditions, offers value for tenants, and supports your financial goals.
At Martin & Co, we regularly advise landlords on achieving that balance. And in 2025, the stakes are higher than ever as landlords face a tighter regulatory environment and tenants become more price-conscious.
2025 rental market snapshot
Let’s look at the national picture before we dive into strategy.
According to the Rightmove Rental Price Tracker (Q3 2025):
- Average advertised rents outside London are now £1,294pcm, up 9.2% year-on-year
- Rents in London have reached an average of £2,634pcm, up 6.4% annually
- Time to let has reduced in many urban and commuter areas due to high demand
Zoopla’s Rental Market Index (Q2 2025) notes:
- Tenant demand is 28% above the 5-year average
- The average share of income spent on rent is now 28%, compared to 25% pre-pandemic
- Rents are still rising, but the pace of growth is slowing in some regions
What does this mean for landlords?
- You still have strong tenant demand
- There may be less room for steep increases in some areas
- Affordability is now a key pricing consideration
Setting rent with current data, local insight, and tenant expectations in mind is key to success.
How to calculate competitive rent in 2025
If you’re preparing to let or re-let a property, here’s how to set a rent that appeals to quality tenants and keeps your returns healthy.
1. Compare like-for-like local listings
Start by researching similar properties in your area.
Check:
- Number of bedrooms and bathrooms
- Condition and age of the property
- Location: postcode, proximity to schools, transport and amenities
- Outdoor space, parking, and furnishing status
Use sites like Rightmove and Zoopla, or better yet, ask your local Martin & Co branch for an up-to-date market analysis.
Tip: Focus on let agreed properties and time-on-market data, not just asking prices.
2. Understand your property’s value drivers
Think about what sets your property apart. In 2025, tenant preferences include:
- Energy-efficient homes (EPC C or above)
- High-speed internet availability
- Smart features like Hive or Ring doorbells
- Modern kitchens and bathrooms
- Pet-friendly lets (where demand is high)
If your property ticks these boxes, you may be able to command a premium — but only if the rest of your offering justifies it.
3. Factor in tenant demand and seasonality
Rental demand fluctuates across the year:
- Spring and early summer are peak letting seasons
- Autumn can be a second wave of movement
- Winter (especially December) tends to slow down
Martin & Co agents can help you interpret seasonal patterns in your postcode to time listings and pricing more effectively.
4. Balance rent with your costs and returns
Calculate your:
- Monthly mortgage payments
- Insurance
- Letting or management fees
- Maintenance budgets
- Expected yield (gross and net)
But remember: cost-based pricing can’t ignore market limits. Tenants won’t pay more just because your mortgage went up. The best approach is to align your expected returns with realistic local market data.
What if you already have tenants?
Rent increases on existing tenancies must follow the legal framework. As of 2025, the rules include:
- Fixed-term ASTs: rent can only increase if the agreement includes a review clause or at renewal
- Periodic tenancies: rent can be raised once a year with proper written notice (e.g. using a Section 13 notice in England)
Our team can advise on timing, process and communications to ensure compliance while maintaining good tenant relationships.
The role of affordability in rent decisions
With the average tenant now spending up to 30% of income on rent in many cities, affordability is front of mind for renters.
If your rent is significantly above similar properties, you may:
- Get fewer enquiries
- Take longer to let
- Attract higher-turnover tenants
Some landlords offer incentives like inclusive bills, small discounts for longer tenancies, or pet-friendly terms to widen appeal without undercutting on value.
How Martin & Co helps you set the right rent
Setting rent isn’t a one-time decision — it’s part of a smart letting strategy. Martin & Co gives you:
Localised rental valuation reports
- Backed by Rightmove, Zoopla and our own live letting data
- Realistic rent bands, not inflated pricing
- Competitor analysis and demand forecasts
Experienced local agents
- Knowledge of what tenants in your area are looking for
- Seasonal advice to launch your listing at the right time and price
Full property marketing and management support
- Professional photography, descriptions and listings across major portals
- Enquiry handling, viewings and tenant referencing
- Rent reviews and legal compliance on renewals
With Martin & Co, you’re not alone in navigating the rental market.
Common rent pricing mistakes to avoid
We regularly help landlords course-correct after an initial misstep. Here are some common errors to watch for:
- Overpricing from the start
Thinking you can always drop later might cost you more in void periods than the higher rent is worth. - Using only national averages
Your town or even your postcode may behave very differently to the UK average. - Ignoring affordability shifts
If rents in your area rose sharply in the last 12 months, they may plateau or soften this year. - Not reviewing rent annually
A “set and forget” approach can mean you fall behind market rates — or push tenants out unexpectedly. - Letting the property sit vacant too long
One extra month vacant = 8.3% of your annual rent lost. Acting on feedback and adjusting price quickly is crucial.
FAQs: Setting rents in 2025
How do I know if my rent is competitive?
Compare against local listings and check response levels in the first 10 days. Better still, ask us for a data-backed rental valuation.
Should I charge more if I offer bills included?
Yes, but make sure it’s clear what’s included and that the premium still offers value versus non-inclusive options.
Can I change the rent if the market shifts after I list?
Yes — as long as the tenancy hasn’t started. Many landlords adjust price based on early feedback or lack of viewings.
Does improving my EPC rating help me increase rent?
Often yes, especially if tenants expect lower running costs. It can also help with compliance and future-proofing.
What if my property is unusual or doesn’t compare easily?
We’ll build a tailored pricing strategy based on features, location and buyer profiles in your area.
Ready to price your rental with confidence?
The best rent isn’t always the highest — it’s the one that lets your property fast, keeps tenants long-term, and supports your investment goals.
With Martin & Co, you get clear advice, real market data, and ongoing support to set and manage rent professionally.
Whether you’re letting your first flat or managing a full portfolio, we’ll help you make the right move in 2025.
Book your free rental valuation with Martin & Co today and get expert advice on setting the right rent.
