Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Landlords Respond to Renters’ Rights Act with Higher Upfront Rents
Landlords in England are setting higher initial rents following the introduction of the Renters’ Rights Act, according to the latest rental data. The Goodlord Rental Index reports that average monthly rent for a new tenancy increased to £1,309 in June, up 6.5% from £1,229 a year earlier.
The data shows an 8.1% increase on May’s average rent of £1,211, marking the largest month-on-month rise since July 2025. This annual increase is a significant change from April and May, when year-on-year rental inflation stood at 1.7%. June’s rent rise also exceeded the latest measures of consumer price inflation and wage growth.
Goodlord’s figures are based on completed tenancy agreements, not advertised rents. The company noted that the private rented sector may be adjusting to the Renters’ Rights Act, which was introduced in May. However, it is too early to determine if this increase is a temporary adjustment or the start of a longer-term trend.
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 saw the largest increase, with rents rising 29.5% between May and June, followed by the North East (15.7%) and Yorkshire and the Humber (12.6%). The West Midlands recorded the smallest monthly increase at 0.5%.
The Renters’ Rights Act restricts landlords to raising rents only once a year via Section 13. Goodlord suggested that this change may be incentivising landlords to set higher initial rents at the start of new tenancies. The company stated that it remains to be seen whether June’s figures represent a one-time recalibration or the beginning of a new trend in the private rented sector.
These developments are particularly relevant for UK letting agents and inventory clerks, who may need to adjust their practices in response to changing landlord strategies and rising rents.
Source: Property Industry Eye