The short version
- A headline portal average is a starting point, not a price.
- Price from recently let comparables, not just what is currently advertised.
- Condition, floor, light, outside space and bills all move the number.
- Overpricing usually costs more in void weeks than it gains in rent.
- Increases on a sitting tenant follow the new once-a-year process.
Most landlords price a flat the same way: type the postcode into a portal, look at the average for the number of bedrooms, and pick a figure near it. It feels objective. It is also the single most common reason a property either sits empty for weeks or quietly under-earns for years.
The problem is that an average blends a refurbished top-floor flat with a tired ground-floor one on the same street. Your property is not the average. It is a specific home with specific strengths, and pricing it well means starting from those.
01 · The trapWhy portal averages mislead
Two issues. First, advertised rents are asking prices, not achieved prices, the figure a landlord hopes for, not what a tenant actually paid. Some of those listings have been up for weeks precisely because the number is wrong. Second, an average hides the range. A street might show a wide spread between the cheapest and the dearest comparable two-bed, and where your flat sits in that range is the entire question.
02 · MethodPricing from real comparables
Better pricing starts with what has actually let recently nearby, not what is currently advertised. Look for genuinely like-for-like properties: same area, similar size and layout, similar condition, let in the last few months. Aim for a handful of close matches rather than a wide net of loose ones.
- Same neighbourhood, ideally the same few streets.
- Same bedroom and bathroom count, similar floor area.
- Let recently, the market moves, so old data ages badly.
- Similar condition and finish to yours.
03 · DetailAdjusting for what makes yours different
Once you have your comparables, adjust up or down for the things an average ignores. A short, honest list of what genuinely moves the rent:
- Condition. A recently refreshed kitchen and bathroom command a premium and let faster.
- Light and floor. Higher floors and good natural light consistently outperform.
- Outside space. A balcony or garden is a real differentiator.
- What's included. Furnished vs unfurnished, and whether any bills are included, both change the figure.
"The right price is rarely the average. It is the average, plus or minus everything the average left out."
City Flats lettings team04 · MathsThe real cost of overpricing
Landlords overprice because the downside feels invisible: you can always reduce later. But every week a property sits empty is a week of rent you never recover. A small monthly premium that adds a few extra void weeks usually leaves you worse off across the year than a slightly lower rent that lets immediately.
Before holding out for a higher figure, work out how many weeks of emptiness that extra rent would have to "buy back". The answer is often longer than the property would have stayed empty at the correct price.
05 · IncreasesRaising rent on a sitting tenant
Pricing a new let is one thing; increasing the rent on an existing tenant now follows tighter rules under the Renters' Rights Act. In short: increases happen once a year, on proper written notice, and the tenant can ask the First-tier Tribunal to review the proposed figure. Crucially, the tribunal can no longer set a rent higher than the one you proposed.
The practical defence is the same discipline as pricing a new let: keep evidence of comparable local rents. If your proposed increase reflects the genuine market, it stands. For the current notice requirements and process, check gov.uk before serving anything.
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