Rents across England experienced a modest increase of 0.5% in May 2026, following a slight decline in April. Despite this monthly rise, the annual growth rate remains subdued, marking the lowest year-on-year increase in nearly a year. This trend reflects ongoing shifts in the private rented sector (PRS) amid new legislation and changing market dynamics, which UK landlords and letting agents should carefully monitor.
Current Trends in Rental Prices
According to the latest Goodlord Rental Index, the average rent in England reached £1,211 in May 2026, up from £1,205 in April. While this represents a positive monthly movement, the annual increase from May 2025 remains modest at 1.7%, with average rents then recorded at £1,191. This rate is significantly lower than the 3.6% annual growth observed in May 2025, indicating a notable slowdown in rent inflation across the country.
The data also shows that average rents in May 2026 remain just below the March level of £1,212, making this the first year since 2020 where rents in May were lower than those recorded two months earlier. This suggests a period of relative stability or slight softening in rental prices, contrasting with previous years of more consistent growth.
Impact of the Renters’ Rights Act and Market Adjustments
The introduction of the Renters’ Rights Act in April 2026 appears to be influencing the rental market’s current behaviour. Goodlord’s chief executive, William Reeve, notes that the sector is still adjusting to the new legal framework, which may affect rental price volatility and market disruption in the coming months. The legislation aims to enhance tenant protections, which could have implications for rental supply and demand dynamics.
Simultaneously, the market is experiencing opposing pressures. On one side, reduced net migration is easing demand for rental properties, potentially limiting upward pressure on rents. On the other, the Renters’ Rights Act combined with ongoing under-delivery in housebuilding—particularly in London—is constraining supply. How these factors balance out will be critical in shaping rental price trends going forward.
Regional Variations in Rent Changes
Regional data reveals that the overall monthly increase in rents was largely driven by gains in Yorkshire and the Humber and the North East. The North East saw a sharp rebound with rents rising 5.5% in May after a 4.9% fall in April. Similarly, Yorkshire and the Humber recorded a 3.2% increase following a 2.8% decline the previous month. Other areas such as Greater London, the South East, and the West Midlands also experienced month-on-month rent increases.
Conversely, rents declined between April and May in the East Midlands, East of England, South West, and North West regions. Despite these fluctuations, London continues to exhibit the highest annual rent growth, with average rents increasing by 5.6% over the year to May 2026, rising from £2,077 to £2,194. This highlights the capital’s ongoing demand pressures and supply constraints relative to other regions.
Rent Inflation Compared to Broader Economic Indicators
It is notable that rent inflation remains below other key economic indicators. Consumer Price Inflation (CPI) was recorded at 3% in April 2026, while average wage growth stood at 3.4%. The slower pace of rental growth relative to inflation and wages may impact landlords’ income expectations and investment decisions. For tenants, this could mean some relief in affordability pressures, although regional disparities remain significant.
This environment underscores the importance of landlords and letting agents staying informed about market conditions and legislative changes, as these factors collectively influence rental yields, tenant demand, and compliance obligations.
What this means for landlords
Landlords should be aware that while rents have increased slightly on a monthly basis, the overall annual growth remains subdued. This may affect rental income projections and investment strategies, particularly in regions outside London where rent growth is weaker or declining. It is advisable for landlords to review their rental pricing regularly to remain competitive while ensuring compliance with the Renters’ Rights Act and other relevant regulations.
Additionally, landlords may need to consider the impact of reduced migration and housing supply constraints on tenant demand and property availability. Staying informed about local market trends and legislative developments will help landlords make well-informed decisions about rent setting, tenancy management, and property maintenance.
What TLA members should consider
- Regularly review and adjust rent levels in line with local market conditions and the latest data to maintain competitiveness and compliance.
- Familiarise themselves with the requirements and implications of the Renters’ Rights Act 2026 to ensure tenancy agreements and management practices are up to date. Relevant resources can be found on the TLA Renters’ Rights Act compliance page.
- Monitor regional rental trends closely, especially if managing properties in areas showing rent declines or volatility, to anticipate potential impacts on occupancy and income.
- Consider the broader economic context, including inflation and wage growth, when planning rental increases or investment decisions.
- Maintain clear communication with tenants regarding any changes in rent or tenancy terms, ensuring transparency and adherence to legal notice requirements.
- Utilise TLA resources such as the TLA Academy for training on market trends, compliance, and tenancy management best practices.
TLA Training Academy
The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.
Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/
TLA update
The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
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