Rents in England have risen by 2.4% year-on-year as of March 2026, signalling a modest increase ahead of the imminent implementation of the Renters’ Rights Act. While monthly rent growth remains subdued, the market is poised for potential shifts once the new legislation takes effect next month.
Current Rent Trends Across England
The Goodlord Rental Index reports that average rents in England reached £1,212 in March 2026, up from £1,184 in March 2025. This 2.4% annual increase is a slight acceleration compared to February’s 2% rise, yet it remains considerably lower than the 4.6% recorded in March 2025. Between February and March 2026, average rents increased by just 0.8%, a rise of less than £10.
Tenant-Friendly Market Conditions
William Reeve, Chief Executive of Goodlord, highlighted that tenants are likely to welcome the latest figures. He noted that wage growth continues to outpace rental inflation, and rents are rising more slowly than other consumer prices. “Whilst minimal month-on-month changes are to be expected at this time of year, the year-on-year figures give a clear picture of a market that has significantly cooled in recent months,” Reeve said.
However, he cautioned that this calm might be temporary. With the Renters’ Rights Act set to come into force in just a month, the market could soon experience increased activity. Reeve warned of a possible surge in gazundering, tenants giving notice, and landlords raising rents, which could dramatically alter the rental landscape in the coming months.
Regional Variations in Rent Growth
Annual rent increases remain below broader inflation measures, with Consumer Price Inflation (CPI) at 3.2% in February and wage growth at 3.9% in March. The strongest rent growth continues to be concentrated in northern regions of England. Yorkshire and the Humber led with a 6.6% annual increase, followed by the North West at 6.3%, and the North East at 5.9%.
Other regions saw more modest rises, none exceeding 2.8%. Notably, rents fell in some areas: the East of England experienced a 2.6% decline, while the South West saw a slight 0.3% drop compared with March 2025.
Monthly Fluctuations and Void Periods
On a monthly basis, some regions saw decreases in average rents. The North West recorded a 2.7% fall from £1,096 in February to £1,066 in March, following a 4% rise the previous month. Conversely, Yorkshire and the Humber posted the largest monthly increase, with rents rising 3.2% from £930 to £959.
Void periods remained stable nationally at 22 days in March. However, regional variations were evident: the North East saw voids lengthen from 23 to 26 days, the South West from 18 to 21 days, while the East of England maintained a shorter average void period of 16 days.
What this means for landlords
Landlords should prepare for a potentially volatile rental market as the Renters’ Rights Act approaches. While current rent growth is moderate and tenant affordability is supported by wage increases, the new legislation may trigger behavioural changes among tenants and landlords alike. Anticipated increases in gazundering and tenant turnover could lead to more frequent rent negotiations and adjustments.
Maintaining clear communication with tenants and staying informed about legislative changes will be essential. Landlords may also need to review their rent-setting strategies and void management to mitigate risks associated with increased market activity.
Source: Based on reporting from Property118
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Source: www.property118.com
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