## England’s Rent Growth Decelerates in January 2026

The latest data from the Goodlord Rental Index reveals that rents across England rose by 2.4% year-on-year in January 2026. This is a marked slowdown compared to the 4.6% increase recorded in January 2025. Average rents now stand at £1,201 per month, up from £1,174 a year earlier. Notably, this rate of rental inflation is below the Consumer Price Inflation (CPI) rate of 3.6% recorded in December 2025 and also lags behind recent wage growth of 4.5%.

For landlords and letting agents, this signals a moderation in rental price increases after several years of strong growth, potentially indicating a more balanced market environment.

## Signs of Softening Tenant Demand and Market Equilibrium

Goodlord’s chief executive, William Reeve, commented on the evolving market conditions: “Whilst prices will continue to go up, the underlying signs point to what could be the return of some equilibrium to the market.” He highlighted that the slower pace of rental inflation combined with lengthening void periods may be early indicators of reduced tenant competition.

Reeve added, “With current rental inflation now sitting well below the CPI and wage growth, this could swing the pendulum of power slightly back towards tenants following several years of ferocious competition for properties.” This suggests landlords might face longer letting times and should prepare for a market that is less aggressively competitive than in recent years.

However, Reeve also noted that the upcoming Renters’ Rights Act, due to be implemented in May 2026, remains an uncertain factor that could impact rental market metrics once again.

## Regional Variations in Rent Changes

The Goodlord Rental Index tracked nine regions across England, with eight recording annual rent increases in January 2026. The North East saw the strongest growth, with rents rising by just over 6%. Other regions posting increases above 3% included the East Midlands, North West, South East, and South West.

Conversely, the East of England was the only region to experience a year-on-year decline, with average rents falling by 1.9%. On a monthly basis, rents rebounded after a seasonal dip in December, rising by 2% nationwide. The North East again led monthly growth with an increase of more than 8%, followed by the South West at 6% and London at 3%. Meanwhile, the South East, East of England, and Yorkshire and the Humber saw small monthly decreases.

For landlords, these regional differences highlight the importance of local market knowledge when setting rents and marketing properties.

## Increasing Void Periods Reflect Market Cooling

Further evidence of a softening rental market is seen in the lengthening of void periods. The average time properties remain vacant increased from 23 days to 26 days in January 2026. Six of the nine regions monitored experienced longer voids, with the North West rising from 18 to 26 days and the East of England from 21 to 32 days.

London was the only region where void periods shortened slightly, from 20 days to 19. Longer voids can affect landlords’ rental income and cash flow, making it important to consider strategies to reduce vacancy times, such as competitive pricing and effective marketing.

## What This Means for Landlords and Letting Agents

The slowdown in rent growth and lengthening void periods suggest a shift towards a more tenant-friendly market. Landlords may need to adjust expectations around rental increases and prepare for potentially longer letting periods. Letting agents should advise clients accordingly and focus on maintaining property appeal and competitive pricing.

The forthcoming Renters’ Rights Act in May 2026 could introduce further changes to the rental landscape, so staying informed and adaptable will be crucial for landlords and agents alike.