Longer Lettings and Stagnant Rents: What London Landlords Need to Do Now

Homes Taking Longer to Let: The New Normal?

Data published by Letting Agent Today highlights a shift in the residential lettings market: properties are now taking longer to let, and rental growth has effectively plateaued, with only a 2.0% increase since February 2025. While this headline may raise alarm bells, understanding the nuances is critical for landlords to navigate these changes prudently.

Why This Matters to Landlords

Longer void periods directly impact rental income and cash flow. For single-unit landlords or accidental landlords who depend heavily on steady rental returns, even small increases in time between tenancies can erode profitability. Portfolio landlords, managing multiple properties, will find the cumulative effect more significant, increasing the risk of negative cash flow during market softening.

Stagnant rent growth also matters. After several years of double-digit increases in some London boroughs, a 2.0% rise over more than a year suggests that upward pressure on rents has eased considerably. This impacts rent review strategies and budgeting forecasts, making it more difficult to rely on rent increases to cover rising costs such as repairs, mortgage rate increases, and compliance upgrades.

Practical Implications Across Landlord Profiles

• Single-unit landlords: Longer market times mean more careful planning to cover mortgage and bills during voids. Consider building a short-term contingency fund if you haven’t already.

• HMO landlords: HMOs may be less affected due to demand for affordable shared living but monitoring local micro-markets is essential as some areas soften more than others.

• Portfolio landlords: The scale of longer voids can significantly impact overall yield. More active portfolio management, including adjusting rents and enhancing property appeal, is advisable.

• Accidental landlords: Those with limited experience should seek professional advice now to reassess rent levels and market properties effectively.

Reviewing Rent Pricing Policies

With rent growth stalling, relying on rent increases to cover costs is risky. Landlords should benchmark their asking rents against similar properties in their area using up-to-date tools such as Rightmove and Zoopla as well as local agent data.

If your rent is above market, consider modest reductions or incentives to attract tenants faster and reduce void periods. Conversely, if you are below market, incremental increases might still be achievable but should be tested carefully to avoid deterring applicants.

Adjusting Marketing and Letting Strategies

Longer letting times suggest current marketing tactics may be less effective. Landlords should:

• Review and improve their property presentation (professional photography, detailed descriptions).
• Consider flexible viewing options and quick response times to enquiries.
• Work closely with letting agents to ensure properties are priced and marketed competitively.

These steps can shorten void periods and improve tenant quality, reducing overall risk.

Monitoring Market Trends

Given the volatility and changing economic context, landlords should schedule regular reviews (quarterly or biannually) of market conditions. Tracking local vacancy rates, rent movements, and tenant demand will help anticipate further market shifts and inform timely adjustments.

Recommended Next Steps

1. Conduct a rent benchmarking exercise: Use multiple data sources to evaluate your current rents.
2. Audit your marketing approach: Ensure your property listings are competitive and attractive.
3. Prepare financial buffers: Especially for single-unit landlords, to cover longer voids.
4. Engage your letting agent: Discuss strategy modifications and market insights.
5. Schedule regular market reviews: To stay ahead with proactive adjustments.

How Rentals & Sales Can Support You

Our landlord intelligence hub offers comprehensive portfolio reviews, compliance audits, and tailored pricing strategies designed for the London market. We help you align your operations with current realities, reduce your letting risks, and maximise rental income sustainably.

Contact us to arrange a personalised consultation.

Compliance note: This article reflects market conditions as of June 2025 and is for informational purposes. Landlords should consult professional advisors for specific legal, financial, or tax advice.