How Much Would My House Rent For?

It can be tricky to know how much your house would rent for, especially if you are new to being a landlord. There is a fine line between charging too much and not charging enough at all. Your regular rental income is essential to the healthy maintenance of your property portfolio, so it’s important to get it right.

So, when it comes to deciding how much rent to charge, doing your homework is absolutely vital! 

Here, we’ll take a look at the factors that determine how much your house would rent for and what you need to take into consideration when making your decision.

Research the market

Rent prices around the UK can vary hugely depending on the location. According to data from HomeLet, the average rental price for a new tenancy in the UK as of August 2025 is £1,328 pcm, with it being £2,129 pcm in London.  Your rental charge will also massively depend on where in the UK your house is situated. As seen above, rent will be a lot more expensive in areas such as London, compared to areas outside of London. So, it is a good idea to know how much the average rental charge is in your area before deciding on a final price.

The best way to gauge an appropriate rental price in your area is to look at local similar-sized properties, Rightmove and Zoopla are great places to start. From there, consider where your property sits within the market. Does it offer something significantly better than your competition, such as a big garden or off-road parking? If so, place your property at the upper end of the average rental price in your area. Alternatively, if your property is lacking in what it has to offer tenants, drop your price to the lower end of the spectrum.

So, our first tip is to help you know what rent to charge is to research the market as much as possible to gain a better idea of what people and willing to pay for your property and the area it’s situated in.

Work out your rental yield

Next, you’ll need to work out what your rental yield is. When deciding how much rent you should be charging, it is essential to also work out your rental yield. The rental yield is a percentage figure and shows the revenue that you earn, or can expect to earn, from your buy-to-let investment.

The most basic formula for working out rental yield is very simple. You take the monthly rental income amount or expected rental income and multiply it by 12. You then divide this figure by the property’s purchase price or current market value and multiply it by 100 to get the percentage.

A good rental yield is usually considered to be between 6-8%. Any less than that and you may find that there is not enough cash flow coming from the property to cover running costs, mortgage payments and unforeseen emergencies. Experimenting with the numbers will play a big part in helping you decide on a suitable rental charge.

Furnished or unfurnished?

Whether or not you are providing your property to tenants furnished or unfurnished will also play a part in what you decide to charge your potential tenants. Generally speaking, the more furniture and fittings you include within your rental home, the higher the rental value you could achieve.

It’s actually not as simple as that, though. This will depend on the type of tenants that you are looking to attract, and the type of tenants that are looking for rented property like yours in your area. If you have a flat in a commuter town, a young professional may be prepared to pay significantly more for a furnished home, kitted out with all the appliances. A family, however, who are looking for their home for the next 5-10 years will probably want to fill a space with their own furniture and belongings, giving it a more personal feel.

Do you want to allow pets?

The next factor to take into consideration when figuring out how much your house would rent for is whether or not you want to allow pets in your home. These days, it is more difficult to enforce a blanket ‘no pets’ policy; however, many landlords will do what they can to avoid letting to tenants with pets. The truth is, though, the UK is a nation of pet lovers, and people are generally willing to pay slightly more in rent if it means that they can live with their beloved pets. A huge 78% of pet owners have experienced difficulty in finding accommodation that accepts pets. Answer this demand, and you could charge more in rent prices.

Speak to a letting agent

One thing that every landlord should do before deciding their rental charge is speak to a local letting agent. They are a great source of information to utilise – even if you don’t want to use one to market your home. They are still available to offer up their expertise if you explain that you are a landlord doing some research into how much your house will rent for.

They will be up to date with the average rental prices for two, three, and four+ bedroom houses, and exactly what local tenants are looking for and what they are prepared to pay. They will also be fully in the know about the climate of the local property market and whether rentals are being snapped up as soon as they are on offer, or lingering around for months on end – as desirability will also play a part in how much your house will rent for.

It’s all about striking a sensible balance. Of course, you don’t want to sell yourself short. You made this buy-to-let investment for a reason. Equally, being unreasonable with your rental expectations as a landlord can really work against you. If you do enough research, you should be able to confidently settle on a realistic figure that will have the prospective tenants rolling in.

We hope our guide has helped you work out how much rent to charge your tenants. If you want to stay protected in the event that tenants are unable to pay their rent, it could be a good idea to take out landlord insurance. With CIA Landlords, you can compare landlord insurance to find the best quote. To find out more, contact us or get a quote today.