Why Islington Deserves a Closer Look in 2025

Islington has long held its place as one of London’s most dynamic and desirable boroughs. Known for its blend of Georgian charm, cultural flair, and proximity to the City, it appeals to a wide range of renters—from professionals and creatives to young families. But as 2025 unfolds, landlords, tenants, and property investors are all asking the same question: what’s actually changing in Islington’s rental market this year?

With updated legislation, evolving tenant expectations, and a shifting economic backdrop, Islington’s rental landscape is going through meaningful transformations. In this blog, we take a data-led look at price movements, tenant demand, and what landlords should be doing to stay ahead—featuring insights from short-let management experts like Pass the Keys.

1. Rental Prices: Growth Stabilising, But Still Strong

In early 2025, the average monthly rent for a 1-bed flat in Islington stands at £2,150, while a 2-bed commands £2,950–£3,200, depending on location and finish. That’s a moderate increase of 3.2% year-on-year, following much steeper rises in 2022–2023.

What’s Driving This Stabilisation?

• Interest rate impact: While mortgage rates remain higher than pre-2021 levels, they’ve started to level off, reducing the urgency for landlords to pass on costs.

• More rental stock: A slight uptick in available properties (up 7% from 2024) has relieved some pressure on prices.

• Tenant fatigue: Renters are more price-conscious, especially young professionals who may now consider adjacent areas like Hackney or Camden for better value.

2. Tenant Demand: Still High, But More Discerning

Islington continues to be a magnet for:

• Professionals working in the City and Tech sectors (thanks to the Northern Line and Overground).

• International tenants and diplomats drawn to the area's prestige and proximity to central London.

• Families seeking good schools and lifestyle appeal in areas like Barnsbury and Canonbury.

However, renters in 2025 are more demanding:

• Energy efficiency and EPC ratings now strongly influence decision-making.

• Work-from-home suitability, including dedicated office space or high-speed internet, is a growing priority.

• Short-let flexibility is gaining interest from digital nomads and contract workers.

3. Short-Term vs Long-Term Lets: Which Way Is the Market Going?

Companies like Pass the Keys, who manage short-let properties on platforms like Airbnb, report continued high occupancy in Islington—averaging 83% for prime locations. This model works especially well near Upper Street, Angel, and King's Cross.

Short-Let Trends (2025):

• Higher yields (up to 40% more annually than long-term lets for well-managed units).

• Popular with corporate travellers, medical tourists, and relocators.

• Requires full compliance with local council regulations, which may tighten later in the year.

Long-Term Lets:

• Still preferred for stability and lower management overhead.

• More attractive to families and professionals seeking 12+ month contracts.

Landlord Tip: If you have a centrally located flat, consider a hybrid model—short-let for peak seasons (April–September), long-let in quieter periods.

4. What’s Changing in 2025?

Legislation & Compliance

• The Renters Reform Bill is expected to phase in Section 21 abolition and introduce a Decent Homes Standard for privately rented properties.

• Licensing schemes in Islington may be updated—landlords should check local council updates regularly.

Sustainability Expectations

• From April 2025, properties below an EPC rating of ‘C’ may face restrictions for new tenancies unless upgraded.

• Retrofit grants and green mortgages are more widely available—landlords should explore these to stay compliant and attractive to eco-conscious tenants.

Tenant Behaviour

• Greater emphasis on flexibility: Many renters seek 6–9 month rolling contracts.

• Co-living trends: HMOs and house shares remain in demand, especially for younger tenants and postgraduate students.

Conclusion: What Landlords Should Do Next

Islington’s rental market in 2025 is more competitive—but still highly profitable for landlords who adapt. Whether you’re managing long-term tenants or exploring the short-let space with help from companies like Pass the Keys, the key to success lies in staying informed, upgrading your property where it counts, and being responsive to tenant needs.

Actionable Tips:

• Review your EPC rating and plan upgrades if below a C.

• Consider flexible rental models if your property is in a high-demand zone.

• Partner with a reliable management service (e.g., Pass the Keys) if exploring short lets.

• Stay up to date with local licensing and compliance rules in Islington.

As one of London’s most iconic boroughs, Islington isn’t slowing down—it’s simply evolving. For landlords willing to keep pace, the future remains bright.