The simple answer is that the best time of year to rent out your property as a landlord in London is the summer.
The rental market in London is driven by students and young professionals. Students typically run on one-year contracts starting between July, August and September, and London also sees tens of thousands of new jobs open up around the same time each year - creating a huge spike in rental demand.
At Rocket, we saw a 400% increase in enquiry levels from June to July last year, and a 300% increase from June to August. The summer months remain the busiest time of year for rental activity in London, and we expect the same again this year.
This demand naturally causes rental prices to rise. Last year, we predicted around a 10% rental uplift over the summer, but in reality, affordability pressures held increases back to 2–3%. For summer 2025, we expect a 5% average rental increase, supported by the fact that LonRes reports a 16% fall in the number of properties being marketed for rental in the prime London lettings market.
However, caution is needed.
If a property already achieved a strong rental last year, it may be smarter to retain good tenants rather than risk a void period - especially if a similar rent is likely all that's achievable. Each property must be assessed individually, not just guessed.
At Rocket, we always provide evidence-based advice, comparing your property against real-time market data so you can make the right decision for your situation.
Navigating the Renters' Rights Bill
The upcoming Renters' Rights Bill is set to bring significant changes to the rental landscape:
1) Abolition of Fixed-Term Tenancies: All tenancies will become periodic, meaning they will continue indefinitely until terminated by the tenant or landlord under specific conditions.
2) Tenant Notice Period: Tenants can end their tenancy at any time by providing two months' notice.
3) Rent Increase Restrictions: Landlords will be permitted to raise rents only once per year, and any increase must align with market rates.
These changes mean that even if you sign a tenant on a long-term contract now, it will convert to a periodic tenancy once the bill is enacted. Therefore, the traditional strategy of securing long-term tenants to ensure income stability may no longer be effective.
Strategic Recommendations for Landlords
Given the forthcoming legislative changes and market dynamics:
- Maximise Summer Demand: Aim to let your property during the summer months to capitalise on higher demand and potentially secure better rental rates.
- Evaluate Tenant Retention: If you have reliable tenants paying near-market rates, consider retaining them to avoid potential void periods, especially since the ability to enforce long-term contracts will diminish.
- Stay Informed and Flexible: With the shift to periodic tenancies, maintaining good relationships with tenants becomes even more crucial. Flexibility and open communication can help ensure longer tenancy durations, even without fixed terms.
At Rocket, we provide evidence-based advice tailored to each landlord's unique situation. Our goal is to help you navigate these changes effectively, making sure your investments remain profitable and compliant.
Need Guidance?
If you're uncertain about how the Renters' Rights Bill will impact your property or need assistance strategising for the upcoming summer rental season, we're here to help.
