Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
English Rents Surge 6.5% as Landlords Respond to New Regulations
Average rents in England increased by 6.5% year-on-year in June, reaching £1,309, according to data from Goodlord. The rise coincides with the implementation of the Renters’ Rights Act, which restricts how often landlords can increase rents during tenancies.
The Goodlord Rental Index reported that the average monthly rent for a new tenancy in June was £1,309, up from £1,229 in June last year. This also represents an 8.1% increase from May’s average rent of £1,211. The annual increase in June marks a significant change from April and May, when year-on-year rental inflation was 1.7%. June’s rent rise also outpaced recent 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 saw 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. The North East and Yorkshire and the Humber followed, with monthly increases of 15.7% and 12.6% respectively. The West Midlands had the smallest monthly increase at 0.5%.
Regulatory Impact
Goodlord stated that the figures, based on completed tenancy agreements, may indicate the private rented sector is adjusting to the Renters’ Rights Act, which was introduced in May. The legislation limits landlords to one rent increase per year via Section 13 notices. Changes to rental regulations come as tax threshold changes are expected to affect most landlords by 2028, adding further pressure to the buy-to-let sector.
The June figures represent the largest month-on-month increase in rents since July 2025, with average rents at their highest level since September last year. Goodlord noted it is too early to determine whether this increase is a temporary adjustment or the start of a longer-term trend. Tenant advocacy groups continue to call for stronger protections in the private rented sector. The coming months will show whether June’s figures are a one-off or signal a sustained shift in rental pricing across England.
Source: PropertyWire