Average rents in England increased sharply in June, with annual rental inflation reaching its highest level in nearly two years, according to data from Goodlord. The rise coincides with the implementation of the Renters’ Rights Act, which restricts how frequently landlords can increase rents during tenancies.
The Goodlord Rental Index shows the average monthly rent for a new tenancy reached £1,309 in June, up 6.5% from £1,229 a year earlier. The figure also represents an 8.1% increase on May’s average rent of £1,211.
The annual increase marks a significant shift from April and May, when year-on-year rental inflation stood at 1.7%. June’s rise also exceeded the latest measures of consumer price inflation and wage growth.
Regional variations
Rental prices increased across every region of England on both an annual and monthly basis. Yorkshire and the Humber recorded the strongest annual growth at 16%, followed by the South West and North East, where rents rose by more than 10% year-on-year.
On a monthly basis, the South West recorded the largest increase, with rents rising 29.5% between May and June, followed by the North East at 15.7% and Yorkshire and the Humber at 12.6%. The West Midlands recorded the smallest monthly increase at 0.5%.
Regulatory impact
Goodlord said the figures, which are based on completed tenancy agreements rather than advertised rents, could indicate that the private rented sector is beginning to adjust following the introduction of the Renters’ Rights Act in May. The legislation limits landlords to one rent increase per year via Section 13 notices.
The changes to rental regulations come as tax threshold changes are expected to affect the majority of landlords by 2028, adding further pressure to the buy-to-let sector.
William Reeve, CEO of Goodlord, said: “These figures show a stark shift away from the trends we’ve seen throughout 2026 so far. After months of warnings about the potential consequences of the Renters’ Rights Act, June’s Index may well give us an indication of the impact it’s starting to have on the ground.”
He added: “One possible explanation for June’s spike in rents is the change the RRA has brought to landlords’ ability to increase rents during tenancy. With landlords now only allowed to raise rents once a year via Section 13, there’s a clear incentive to begin new tenancies at higher rates than they may have previously.”
Market outlook
The June figures marked the largest month-on-month increase in rents since July 2025, with average rents reaching their highest level since September last year. Goodlord noted it is too early to determine whether the increase represents a temporary adjustment or the start of a longer-term trend.
The rental market developments occur as tenant advocacy groups continue to push for stronger protections in the private rented sector. The coming months will reveal whether June’s figures represent a one-time market recalibration or signal a sustained shift in rental pricing across England’s private rented sector.