You have probably seen the headlines. National newspapers and property websites are full of stories about a rental market running out of steam, predicting a mass exodus of landlords and a dramatic slowdown in rent rises. After years of frantic activity, the narrative is one of decline. But what does that really mean for you, here in Hemel Hempstead?
As the local property experts on the ground, we are here to cut through the noise. The national picture is one thing, but the reality for landlords and tenants in our town is often quite different. This report gives you the real, data-backed picture of the Hemel Hempstead lettings market as we see it in the third quarter of 2025. It is a story not of decline, but of resilience, opportunity, and the need for smart, informed decisions.
To understand what is happening in Hemel, we first need to look at the UK-wide trends. The post-pandemic rental boom, characterised by sharp, double-digit rent hikes, has come to an end. This is not because tenant demand has collapsed. It is because tenants across the country have hit an affordability ceiling.
The numbers paint a clear picture. Over the last five years, average rents for new lets have jumped by a staggering 44%. Over the same period, average wages have only grown by 36%. This gap is unsustainable. Tenants simply cannot afford for rents to keep climbing at the same pace. This financial pressure is the single biggest factor cooling the national market, leading to a situation where nearly a quarter of all rental properties are seeing their asking price reduced to attract tenants.
At the same time, the severe imbalance between supply and demand is beginning to ease. Nationally, the number of available rental homes is up by around 15% compared to this time last year, while the number of tenants looking to move has fallen by between 10% and 16%. This has direct consequences for landlords. The average time it takes to let a property has increased from 21 days to 25 days, and the number of enquiries each property receives has dropped from a frantic 16 to a more manageable 11.
This does not mean it is suddenly a renter's market. Competition remains well above pre-pandemic levels. What it does mean is that the power dynamic has shifted slightly. For the past few years, landlords held all the cards. Now, with more choice and a firm cap on what they can afford, tenants have a little more breathing room and negotiating power. The era of simply putting a property on the market and watching a dozen applications flood in is over. Success in this new climate requires a more strategic approach.
While the rest of the UK market finds its new, calmer level, Hertfordshire is telling a different story. Our county, with Hemel Hempstead at its heart, is proving far more resilient than the national average. The fundamental drivers of our local market, an unbeatable location and a thriving economy, are insulating us from the worst of the slowdown.
The official data from the Office for National Statistics (ONS) is compelling. In the 12 months to July 2025, annual private rent increases in St Albans were recorded at 7.5%, while in East Hertfordshire they hit an incredible 10.1%. Even in Watford, growth was a solid 4.8%. These figures are all significantly higher than the UK-wide average, which was slowing to around 6.7% over the same period.
This outperformance is not an accident. It is a direct result of Hertfordshire's unique advantages. The proximity to London remains a primary driver of demand. As rents in the capital continue to be exceptionally high, professionals and families are pushed into the commuter belt, seeking a better quality of life without sacrificing access to the city. This creates a constant and reliable stream of high-quality tenants.
Furthermore, this demand is not just coming from London. The extremely high rental prices in neighbouring prime markets like St Albans, where the average rent now stands at £1,874 per month, create a powerful ripple effect. As tenants find themselves priced out of these areas, Hemel Hempstead becomes the next logical and more affordable choice. This positions our town not just as a destination in its own right, but as a key beneficiary of powerful regional price pressures, fuelling our local demand and keeping the market robust.
Now we come to the numbers that truly matter for local landlords and tenants. We have analysed hundreds of local listings and the latest market reports to show you exactly what is happening in Hemel Hempstead in Q3 2025.
The rental market in Hemel Hempstead is not one single entity. It is a collection of distinct micro-markets, each with its own character, tenant profile, and price point. Understanding these differences is the key to making a successful investment or finding the perfect home. The premium for properties near the station in Boxmoor is clear, while the value for families in Adeyfield is just as apparent.
|
Neighbourhood |
Average Rent (1-Bed Flat) |
Average Rent (3-Bed House) |
|
Hemel Hempstead (Overall) |
£1,200 pcm |
£1,875 pcm |
|
Boxmoor (HP1) |
£1,200 pcm |
£1,900 pcm |
|
Apsley (HP3) |
£1,225 pcm |
£1,900 pcm |
|
Adeyfield (HP2) |
£1,150 pcm |
£1,825 pcm |
Data compiled from Q3 2025 rental listings on major UK property portals.
This data reveals a clear two-tier market operating within our town. The first tier is the premium commuter market, centred around Boxmoor and Apsley. Here, proximity to the mainline stations is the primary driver of value. These areas attract young professionals and London commuters who are willing to pay a premium for convenience. Modern, well-presented one and two-bedroom flats perform exceptionally well in this tier.
The second tier is the family and value market, typified by areas like Adeyfield and Gadebridge. Here, the drivers are different, with good school catchments and affordability being the main attractions. These neighbourhoods offer more space for the money, making them the smart choice for families and budget-conscious tenants. Larger three-bedroom houses in this tier often provide some of the best rental yields in the town. For a landlord, understanding which tier a property falls into is absolutely critical for pricing, marketing, and attracting the right kind of tenant.
While the national average "time to let" has stretched to 25 days, the story in Hertfordshire is one of continued high demand. In nearby Hitchin, for example, properties are letting in just 8 days on average. Our own experience in Hemel Hempstead reflects this pace. Well-priced and well-presented properties are still letting very quickly, often within two weeks, demonstrating the persistent strength of local tenant demand.
This contrast highlights just how robust our local market is compared to the national picture. Hemel Hempstead is not just a stable market, it is an outperforming one.
|
Metric |
Hemel Hempstead / Herts |
UK Average |
|
Annual Rental Growth (YoY) |
Approx. 7.5% |
Approx. 3-4% |
|
Average Time to Let |
Under 15 days |
25 days |
|
Tenant Enquiries per Property |
High (15+) |
11 |
Data compiled from ONS, Rightmove, Zoopla, and Pegasus Insight reports for Q2/Q3 2025.
One of the most persistent national headlines has been the "great landlord exodus." The story goes that rising costs and increased regulation are forcing landlords to sell up in droves. In Hemel Hempstead, this is a myth.
A comprehensive survey by the TDS Charitable Foundation, which specifically questioned local landlords, found that in the past year a massive 63% of landlords sat tight, neither buying nor selling. A further 23% actually expanded their portfolios. That means 86% of Hemel Hempstead landlords either held or increased their property holdings. Only 14% sold up, a figure consistent with normal market churn.
This local confidence is backed by national trends showing that serious investors are doubling down, not getting out. The latest data from UK Finance shows a 17% increase in the total number of buy-to-let loans this year, with an even more encouraging 28% uplift in loans for new rental home purchases.
What is really happening is not an exodus, but a professionalisation of the market. The combination of new regulations, like the upcoming Renters' Rights Bill, and a more competitive environment is squeezing out "accidental" or less-committed landlords. This is creating an opportunity for serious, professional investors who treat their portfolio as a business. The market is not shrinking, it is shifting towards landlords who are better prepared, better capitalised, and who understand the value of professional management.
The Hemel Hempstead of today is just the beginning. The long-term outlook for the town's rental market is underpinned by massive, multi-decade investment in housing, infrastructure, and high-value employment. For a landlord, these projects significantly de-risk a long-term investment, providing a clear and visible pipeline of future tenant demand and a cast-iron guarantee of future growth.
The headline project is the Hemel Garden Communities (HGC) programme. This is an ambitious, transformative plan to deliver over 11,000 new homes and 10,000 new jobs by 2050. Crucially, this is not just about building houses. It is a vision for creating a network of sustainable, connected neighbourhoods complete with new schools, parks, village centres, and vastly improved transport links.
Driving the employment side of this growth is the Hertfordshire Innovation Quarter (Herts IQ). This is the engine of our future professional tenant base. As a designated Enterprise Zone, its specific focus is on attracting high-value enviro-tech, smart construction, and clean-tech businesses to the area. This strategy will create thousands of high-calibre, well-paid professional jobs, whose employees will all need high-quality homes to rent.
Alongside this, Dacorum Borough Council's partnership to regenerate the town centre aims to create a "thriving culture and leisure hub," enhancing the lifestyle appeal of Hemel and making it an even more attractive place for tenants to live and work.
So, what does this all mean for you? The Hemel Hempstead rental market in Q3 2025 is healthy, resilient, and packed with opportunity. The era of easy, double-digit rent hikes may be over, but it has been replaced by a more sustainable and predictable market that rewards smart, strategic thinking.
The market is still firmly in your favour, but your approach must adapt.
● Price Realistically: The data is clear. Use our neighbourhood analysis to price your property correctly from day one. Over-ambitious pricing will lead to costly void periods.
● Presentation is Everything: With tenants having more choice, quality wins. A well-presented, well-maintained property will always let faster and for a better price than a tired, neglected one.
● Think Long-Term: The future of Hemel Hempstead is incredibly bright. The major infrastructure and employment projects on the horizon make this a market to invest in for long-term capital and rental growth.
The good news is that the frantic conditions of the last few years have eased. You now have more choice and a little more power.
● Be Prepared: The market is still fast-paced and competitive. Have your references, deposit, and documentation ready to go so you can act quickly when you find the right property.
● Negotiating Power: For properties that have been on the market for a few weeks, there is now more room to negotiate on the rent or the terms of the tenancy. Do not be afraid to make a sensible offer.
Navigating this evolving market, whether you are a landlord looking to maximise your investment or a tenant searching for the perfect home, requires expert local knowledge. Contact Squire Estates today for a personalised strategy session to help you achieve your property goals.
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