Rents climb to highest level in two years

Rental inflation in England has reached its highest level in two years, with average rents rising sharply in June 2026. Industry experts suggest that recent legislative changes may be influencing this upward trend.

Goodlord’s latest rental index reveals that year-on-year rental inflation hit 6.5% in June 2026, the highest since August 2024. Average rents rose to £1,309, marking the highest figure since September 2025 and an increase of £80 compared to the previous year.

Significant Increase in Rental Prices

William Reeve, CEO of Goodlord, attributes the surge partly to the Renters’ Rights Act, which has altered how landlords can increase rents during tenancies. He noted that landlords are now limited to raising rents once a year under Section 13, potentially encouraging higher initial rents for new tenancies.

Reeve commented: “June’s figures may indicate the beginning of a new normal in the private rented sector, following a period of relatively subdued rental growth in 2026.”

Rents Rise Across All English Regions

The 6.5% annual rental inflation in June considerably outpaces the 3% Consumer Price Inflation reported by the Office for National Statistics in May, as well as wage growth of 3.4% during the same period.

Every region in England saw rents increase both year-on-year and month-on-month in June. Yorkshire and the Humber experienced the largest annual rise at 16%, while the South West and North East each recorded increases of 10% or more. The East Midlands saw a 7.7% year-on-year rise.

Month-on-month, the South West saw the most significant increase with rents rising 29.5% from May to June. The North East and Yorkshire and the Humber followed with increases of 15.7% and 12.6% respectively. The West Midlands had the smallest monthly rise at 0.5%.

How TLA can help landlords prepare

With rental inflation rising and legislative changes affecting rent increases, landlords must stay informed and organised to manage their portfolios effectively. TLA membership offers access to practical compliance resources and guidance tailored to the evolving private rented sector.

TLA’s new property management and compliance platform, currently available in BETA testing as ORBIT™, is designed to help landlords organise properties, manage important rental documents, and keep track of compliance activity in one place. This can be particularly useful when adapting to changes such as those introduced by the Renters’ Rights Act.

Members can explore TLA membership to access these resources and learn more about ORBIT™ BETA access, supporting landlords in navigating the current rental market and regulatory environment.