If you’re a landlord in London, understanding whether your rental property is being let at actual market rent is critical to maximising your income, staying legally compliant, and keeping your property investment profitable.
The London rental market is dynamic, and failing to adjust your rent in line with the market could cost you thousands throughout a tenancy.
At London Estate Agency, we specialise in accurate rent assessments, rent increase support, tenant management, EPC services, and full Compliance with legislation such as Section 13 notices.
Here’s how to assess if your property is at market rent — and what to do if it isn’t.
What Is Market Rent in London?
Market rent is the amount of rent a willing tenant would reasonably pay to a willing landlord for a similar property in the same area under similar conditions. It depends on several factors:
Location
Size and condition of the property
Amenities and features
Proximity to transport, schools, and shops
Current market demand
Market rent fluctuates frequently in London, and landlords must stay informed or risk being left behind.
Why It’s Crucial to Charge Market Rent
Undercharging can lead to lost income and undervaluing your assets.
Overcharging may result in more extended void periods, higher turnover, and tenant disputes.
By ensuring your rent is in line with the market:
You maximise rental yield
Reduce the risk of void periods
Maintain a positive cash flow
Attract and retain quality tenants
Stay legally compliant, especially during rent reviews and renewals
5 Clear Signs Your London Property Is NOT at Market Rent
Your Tenant Has Been in Place for Over 12 Months Without a Review
Prices can shift significantly within a year in London’s volatile rental climate.
If you haven’t reviewed the rent annually, chances are high that your current rate is below market value.
Similar Properties in Your Area Are Letting for More
Browse platforms like Rightmove, Zoopla, and OnTheMarket. If similar properties rent for more than yours, it’s time to re-evaluate your rent.
You Haven’t Factored in Renovations or Upgrades
If you’ve upgraded your property — a new kitchen, modernised bathroom, or added furnishings or smart tech — your rental value may have increased significantly, and a rent review is essential.
You Rely on Old Valuations
Valuations done more than 12 months ago are outdated.
London’s rental market changes quickly, and what was market rent a year ago might now be 10–20% below current rates.
You’re Unsure How to Serve a Legal Rent Increase
Many landlords avoid increasing rent because they’re unsure how to do it legally.
Without a proper Section 13 notice, a rent increase may be unenforceable — and tenants can dispute or ignore it.
How to Determine Market Rent for Your Property
1. Get a Professional Market Rent Review
At London Estate Agency, we provide comprehensive market rent reviews using live data, local demand metrics, and tenant feedback. Our rent review service helps ensure:
Legal Compliance
Accurate pricing
Effortless implementation
2. Analyse Local Competition
We conduct a comparative market analysis — comparing your property to 3–5 similar homes within your postcode and nearby areas.
This gives a realistic picture of what tenants are willing to pay.
3. Understand Rental Trends
Our team continuously tracks seasonal and economic trends.
For example, demand may spike in August–September before academic terms begin. We help you time your rent adjustments effectively.
Can You Legally Increase the Rent? Yes — Here’s How
Landlords in London can increase rent legally using the following methods:
Periodic Tenancy (Rolling Contract)
Use a Section 13 notice to increase rent no more than once yearly, with at least one month’s notice to the tenant.
The increase must be fair and in line with market rates.
Fixed-Term Tenancy
Rent can only be increased if:
There is a rent review clause in the tenancy agreement
Or the tenant agrees to a new fixed-term agreement with the new rent
If you’re unsure how to serve notice or update your agreement, London Estate Agency can handle all legal Compliance and documentation on your behalf.
We Offer In-House Rent Review & Increase Services
Our in-house legal and lettings experts support landlords with:
Accurate market rent assessments
Preparation and service of Section 13 notices
Drafting of new tenancy agreements
Communication with tenants to ensure smooth implementation
We protect your interests while preserving tenant relationships.
Benefits of Working with London Estate Agency
Personalised Rent Reviews backed by live market data
Full Compliance with the latest rental laws and regulations
Tenant Communication is handled by professionals
In-House Rent Protection & Screening Services
Energy Performance Certificate (EPC) services included for ongoing legal Compliance
Our goal is simple: help landlords in London maximise returns, reduce hassle, and stay compliant — all under one roof.
FAQs: Market Rent in London
How often can I review my property’s rent?
Typically, once every 12 months, but reviewing every 6 months in high-demand markets can be beneficial.
Can I increase rent mid-tenancy?
Only if the tenancy agreement allows or the tenant agrees. Otherwise, you must wait for the fixed term to end or issue a Section 13 notice under a periodic tenancy.
How much notice must I give for a rent increase?
One whole month for periodic tenancies. For fixed-term, it must be agreed upon in writing or through renewal.
What happens if the tenant refuses a rent increase?
If the increase was served correctly, the tenant must accept, negotiate, or leave.
If they dispute it, the case may be taken to a First Tier Tribunal, where a fair market rent is determined.
Can you help with tenants who underpay?
Absolutely. We manage rent arrears, serve legal notices, and provide rent guarantee insurance to protect your income.
Take Control of Your Property’s Profitability Today
Don’t leave money on the table. If you suspect your London rental property is not achieving its actual market value, now is the time to act.
With rent rising in many parts of London, even a slight increase can mean hundreds or thousands more per year in income.
Let our experts at London Estate Agency review your current rent, handle all legal requirements, and help you stay compliant — all while protecting your bottom line.
