Are You Getting the Most from Your Rental Income?

Whether you own a single buy-to-let or a larger portfolio, it is worth asking from time to time whether your property is working as hard as it could. Simply raising the rent is not always the most effective route to better returns, and under the Renters' Rights Act 2025, which came fully into force on 1 May 2026, it is a more careful process than it once was. There are other ways to improve what a property earns, and many of them are well within a landlord's control.

Know your market

London remains the most expensive rental market in the country, with average private rents across the capital reaching £2,290 per month in April 2026, according to the ONS. Central London in particular continues to attract consistent demand from a wide range of tenants, and our areas reflect this well.

Kennington has become increasingly popular with young professionals and families looking for well-connected, characterful homes south of the river. London Bridge draws tenants who want to be close to the city, with easy access to some of the capital's best restaurants, markets and cultural venues on their doorstep. Westminster sits at the higher end of the market, averaging £3,149 per month in April 2026 according to the ONS, with sustained demand from professionals, international tenants and those who want to be at the centre of the capital.

Knowing where your property sits within its local market is the essential starting point for any decision about how to manage or improve your returns.

Rent increases work differently now

Under the Renters' Rights Act, rent can only be increased once per year. Any proposed increase must follow the statutory Section 13 process, with at least two months' written notice to tenants using Form 4A. Existing rent review clauses in tenancy agreements are no longer valid, and increases must reflect open market rent. Tenants have the right to challenge a proposed increase at the First-tier Tribunal if they consider it unreasonable.

Getting the price right from the outset therefore matters more than it ever has. A well-priced property, let to the right tenant from day one, will almost always outperform one that relies on annual upward adjustments to compensate for a weaker start.

What makes a difference

Presentation is consistently underestimated. A well-maintained property, freshly decorated and properly presented, will let faster and to better tenants than one that looks tired. Fewer void periods are often where the most meaningful gains are found.

Energy efficiency has moved from a nice-to-have to something tenants actively factor into their search. Properties with good insulation, modern heating and a strong EPC rating generate more interest and tend to let more quickly. With regulatory requirements around energy standards continuing to tighten, attending to this sooner rather than later makes sound sense.

Day-to-day management has a direct bearing on returns too. Tenants who feel well looked after and whose issues are dealt with promptly are far more likely to stay. A long-term settled tenant is one of the most effective ways of keeping a property consistently profitable. A good property management service keeps the relationship with tenants in good order and deals with problems before they become expensive ones.

Thinking about a new investment?

If you are considering a buy-to-let in central London, the starting point is understanding your target tenant before committing to a property. The right location and property type for your chosen audience will serve you far better than chasing yield figures alone. A good letting agent will give you the granular local picture that headline data cannot.

A few common questions

We're often asked similar questions by landlords navigating these changes, so we've put together quick answers to the ones that come up most.

Can I increase the rent whenever I think the market has moved?
No. Rent increases are limited to once every 12 months and must follow the Section 13 process, with at least two months' written notice given via Form 4A. The proposed figure should also reflect open market rent rather than simply what a landlord would like to charge.

Can I increase the rent during the first year of a tenancy?
No, rent cannot be increased at all within the first 12 months of a tenancy. This is a hard rule under the Renters' Rights Act, so it's worth building this into your planning from the outset.

Does my old rent review clause still apply?
No. Rent review clauses in tenancy agreements are no longer valid for increasing rent. The Section 13 process now applies regardless of what the original agreement said.

What happens if my tenant disagrees with a proposed rent increase?
They can challenge it at the First-tier Tribunal if they consider it unreasonable. The Tribunal cannot set the rent any higher than the figure a landlord proposed, so a well-evidenced, market-aligned increase from the outset tends to reduce the likelihood of a successful challenge.

Is raising the rent the best way to improve my returns?
Not always. A property that's well presented, accurately priced and well managed from the outset can often perform just as well, if not better, than one that relies on regular increases to make up for a weaker start. Void periods are usually where the real cost is felt.

How much does energy efficiency affect demand?

It's increasingly something tenants factor into their decision, and properties with a stronger EPC rating, good insulation and modern heating tend to generate more interest. With regulatory standards continuing to evolve, it's generally worth keeping an eye on this rather than leaving it until later.

Is it better to keep a long-term tenant, even if I might get more from a new tenancy?
It can work out that way. A settled, reliable tenant can reduce void periods and the costs that come with re-letting, which often has a meaningful impact on overall returns, though every situation is a little different.

How do I know if my rent is in line with the local market?
It depends on the specific area, property type and tenant profile, so it's worth getting a current local read rather than relying on general averages. A letting agent with active knowledge of the area can usually offer a more accurate picture than headline data alone.

We'd love to hear about your property

Our lettings and property management teams have been working across Westminster, London Bridge and Kennington for over thirty years. Whether you have one property or several, we are always happy to share what we are seeing in the market and talk through what might work best for you. 

The blog was updated on 16/07/2026.