England’s rents rise 0.5% but annual growth stays low

Landlords saw rents rise again in May after April’s fall, but annual rent growth remains at its lowest level for 10 months.

The Goodlord Rental Index shows average rents in England reached £1,211 in May, up 0.5% from £1,205 in April.

However, rents were still only 1.7% higher than in May 2025, when the average stood at £1,191.

That leaves annual rent growth at less than half the 3.6% recorded in May last year.

PRS is changed

The firm’s chief executive, William Reeve, said: “A month on from the introduction of the Renters’ Rights Act, it’s clear the market is still recalibrating.

“Whether the new legislation will bring the widespread disruption and price volatility many have predicted remains to be seen.

“Nonetheless, the overall picture is one of a rental sector that has fundamentally changed.”

He added: “These figures reflect a market being pulled in two directions: on one hand, reduced net migration is easing demand-side pressure; whilst the Renters’ Rights Act and continued under delivery in housebuilding particularly in London, is constraining supply on the other.

“How these forces play out over the coming months will be critical in determining the trajectory of rental prices.”

Lowest rent rise

The index is based on thousands of verified tenancy transactions each month and records actual rents paid by tenants.

Goodlord says April had already produced the lowest annual rent rise since July 2025, with May continuing at the same 1.7% level.

The figures also put rent inflation below Consumer Price Inflation at 3% in April and wage growth at 3.4%.

Average rents remain just below their March level of £1,212, despite the May increase.

That makes 2026 the first year since 2020 in which rents were lower in May than two months earlier in March.

Where rents rose

The national monthly increase was driven largely by Yorkshire and the Humber and the North East.

Rents in the North East fell 4.9% in April before rising 5.5% in May.

Yorkshire and the Humber recorded a 3.2% increase in May, following a 2.8% fall in April.

Greater London, the South East and the West Midlands also recorded month-on-month increases.

Where rents fell

Rents fell between April and May in the East Midlands, East of England, South West and North West.

The monthly rise was lower than last year’s April-to-May increase, when rents climbed 2.1%.

London again recorded the highest annual rent growth of any region.

Average rents in the capital rose 5.6% in the year to May, from £2,077 to £2,194.