UK rents rise across all regions with signs of slowing growth

UK rents rise across all regions with signs of slowing growth

Rents across the UK increased by 5% year-on-year in October 2026, maintaining a strong pace above inflation. However, monthly rental growth moderated and void periods lengthened, indicating a possible seasonal slowdown.

UK landlords and letting agents saw rents rise by an average of 5% over the past year, according to data from Goodlord. This annual growth rate has held steady for two consecutive months and exceeds the current UK inflation rate of 3.6%. Despite this robust annual increase, the pace of monthly rental growth slowed to 0.6% in October from 0.9% in September. Additionally, the average void period between tenancies extended from 20 days in September to 28 days in October, suggesting the market is beginning to cool as it approaches the winter season.

Across the UK, the average rent rose from £1,516 in October 2025 to £1,592 in October 2026, meaning tenants are paying approximately £912 more annually compared to the previous year. Wales experienced the highest annual rental growth at 7%, followed by England at 5.7%. Scotland recorded the smallest increase, with rents rising by 2.7% year-on-year. Regionally, all areas except the East of England saw rent increases, with the North East leading with a 14.2% rise.

Detailed rental growth and market trends by region

The North East’s rental market showed the most significant increase, with average rents rising from £881 to £1,007 over the year, translating to an additional £1,512 in annual costs for tenants. Yorkshire and the Humber also recorded notable growth, with rents up 8.7% year-on-year. Despite these strong annual figures, the month-on-month rental growth in these regions slowed considerably in October. Yorkshire and the Humber saw a 2.1% increase in rents between September and October, recovering from a previous dip, while the North East’s monthly rent rise slowed sharply to 0.7% from 5.6% in September.

Other regions also experienced a slowdown in monthly rental growth. The South West’s monthly increase dropped to 0.4% from 2.5% the previous month, and the North West’s growth slowed to 1.2% from 3.1%. The East of England was the only region to see a slight year-on-year rent decline of 0.3%. Void periods, an important indicator of market activity, lengthened in most regions. Greater London recorded the shortest voids at 25 days, while Wales had the longest average void period of 34 days, followed by Yorkshire and the Humber at 32 days. The North East’s void period increased from 11 days in September to 28 days in October.

Context of rental growth amid economic and seasonal factors

Rents rising faster than inflation is a significant trend for landlords and letting agents, as it affects tenant affordability and demand dynamics. The sustained 5% annual growth rate reflects ongoing pressures in the rental market, including housing shortages and increased living costs. However, the recent moderation in monthly rent increases and lengthening voids suggest that the market may be entering a more balanced phase, typical of the winter months when rental activity traditionally slows.

For landlords, this environment means rental income remains strong but with potential challenges ahead. The longer void periods could increase holding costs, and slower rent growth may signal a need to adjust expectations for the coming months. Letting agents might see a slight softening in demand, requiring more active marketing and tenant engagement to minimise vacancies.

Practical implications for landlords and letting agents

Landlords should monitor void periods closely and prepare for possible longer gaps between tenancies during the winter. Maintaining properties to high standards and offering competitive rents will be important to attract tenants in a potentially cooling market. Letting agents should advise landlords on realistic rent setting based on regional trends and encourage proactive communication with tenants to reduce turnover.

Despite the overall positive rental growth, the regional variations highlight the importance of local market knowledge. For example, landlords in the North East and Yorkshire and the Humber may still benefit from robust demand and rising rents, while those in the East of England might face more challenges. Keeping abreast of these trends can help landlords and agents make informed decisions about rent reviews, marketing strategies and portfolio management.

Uncertainties and what to watch going forward

While the data points to a seasonal slow down, the extent and duration of this cooling remain uncertain. Economic factors such as inflation rates, interest rates, and government policy changes could influence rental demand and affordability. Additionally, upcoming regulatory changes affecting landlords and letting agents could impact market dynamics. Monitoring void periods, tenant demand, and rent collection rates will be critical indicators in the months ahead.

Landlords and agents should also stay alert to any shifts in tenant behaviour, such as increased demand for longer tenancies or changes in preferred locations, which could affect rental income stability. Keeping updated with official guidance and market reports will support effective decision-making in this evolving environment.

What landlords should consider now

• Review rent levels in light of regional trends and tenant affordability to avoid extended voids.
• Maintain property standards and compliance to attract and retain tenants during slower market periods.
• Plan for potentially longer void periods during winter by budgeting for holding costs and considering flexible tenancy terms.
• Stay informed about regulatory changes and government announcements that may affect rental operations.
• Engage with tenants proactively to foster good relationships and reduce turnover.

Supporting landlords with rental market challenges

Membership of The Landlord Association (TLA) offers access to practical compliance resources and up-to-date information on rental market developments. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords and letting agents organise property records, monitor tenancy documentation, and keep track of key actions such as inspections and communications. This can be particularly useful in managing void periods and preparing for changes in rental demand.

Exploring TLA membership can provide landlords with support to navigate the current rental environment, access expert advice, and use tools that assist with compliance and portfolio management. ORBIT’s ongoing development aims to streamline property management tasks, helping landlords stay organised and responsive to market shifts.

Looking ahead, landlords should continue to monitor rental trends closely and adapt their strategies to maintain occupancy and rental income amid a potentially more subdued market.

Sources: Letting Agent Today