Why Rent Reviews Matter—Especially Now

How to Negotiate Rent Increases Effectively in Cardiff Lettings

Following on from our previous post on retaining tenants, it’s time to address the next step in maximising your rental income: rent reviews. Regular rent reviews help ensure your property keeps pace with the evolving market—vital in high-demand areas like Fairwater and Cardiff. Let’s explore when and how to review rent, what legal considerations come into play, and how to communicate increases with confidence.

1. Understand the Local Market: Cardiff Rents Are Rising

• The Cardiff rental market remains strong—with average rents up 9.9 % in May 2025, reaching £1,119/month, significantly higher than the Wales average of £799 and the UK average of £1,339. Red Key Property ServicesOffice for National Statistics

• Recent data confirms that, in June 2025, average flat rents in Cardiff were £1,124, with one-bedroom flats at £871 and two-beds at £1,042. Martin & Co

• Although broader UK rental inflation is easing (7.0 % in the year to May 2025), Wales still runs ahead, at 8.5 %. Office for National Statistics

Key takeaway for landlords: your property may well be below the local average—and now is the time to consider a review.

 

2. Know the Legal Landscape: Can You Increase Rent?

• To increase rent in Wales, a landlord must serve the tantn with a notice of variation of rent (Form RHW12) at least two months before the rent increase takes effect.

• The increase must also adhere to the terms of the occupation contract and is generally only permitted at 12-month intervals.

 

3. How Often Should You Review Rent?

• As a general rule of thumb, once per year aligns with tenant expectations and legal norms. The Independent Landlord

• In commercial leases, reviews may occur every 3–5 years, but that’s less relevant for residential landlords. Harper James

4. Effective Steps for Rent Review in Fairwater

** Step 1: Check Your Last Rent Review**

• Identify when it was, what current rent is vs. current Cardiff averages.

• Use local data (like the £1,119 May average) to benchmark.

** Step 2: Communicate Early and Transparently**

• If tenants are good, start conversations 2–3 months before review date.

• Share data (“Average Cardiff rent is now…”), acknowledging their reliability as tenants.

** Step 3: Offer Options**

• Avoid a sudden steep hike; propose a phased increase or modest alignment.

• Emphasise continued service quality (maintenance responsiveness, reliability).

** Step 4: Proper Process**

• For fixed-term tenancies with clauses: follow agreement terms.

• If updating at renewal, clearly outline new rent, referencing local market conditions.

** Step 5: Monitor and Review Later**

• Collect feedback from tenants; if increase risks vacancy, be ready to adjust.

 

Final Thoughts

By reviewing rents annually, using proper legal channels, and leaning on strong Cardiff market data—especially Fairwater-specific—you can uphold rental value while maintaining positive tenant relationships. Fairwater remains in-demand, and landlords who act strategically today are well-placed for long-term stability and profitability.

 

If you’re starting to think about when you last reviewed your rent—or if your current letting agent has raised the subject without explaining why—now’s the perfect time to get clarity.

Get in touch with our team today to arrange your free rent review consultation and see how your property compares to the current Cardiff market.