Average rents across England increased by 2% year-on-year in February, reaching £1,203 per month, according to the latest rental index from Goodlord. This marks a modest rise compared with £1,180 recorded in February 2025.
Despite the increase, the pace of rental growth appears to be slowing. February’s annual rise of 2% is slightly lower than the 2.4% increase reported in January and significantly below the 4% growth recorded at the same time last year.
The Goodlord Rental Index is based on verified tenancy agreements rather than advertised rental prices. As a result, it reflects the actual amounts tenants and landlords agree upon when contracts are signed, offering a clearer picture of market conditions.
Signs of a More Balanced Market
William Reeve, chief executive of Goodlord, noted that the latest figures suggest the rental market may be moving towards greater stability after several years of rapid price increases.
He explained that the continued slowdown in rental inflation could indicate that the market is settling into a more balanced position following a period of record growth.
According to Reeve, this trend could be positive news for tenants, particularly if wage growth continues to outpace rental increases. A slower rate of rent growth may help ease affordability pressures for renters.
He also pointed out that the data suggests supply levels may be holding up, even as landlords face ongoing regulatory changes and uncertainty in the sector.
If the current trend continues into the spring months, Reeve believes it could create a relatively stable environment ahead of the Renters’ Rights Act, which is expected to come into effect on 1 May.
Regional Differences Across England
While the national average showed a modest increase, regional data revealed a mixed picture across England.
In the East of England, average rents actually fell over the past year. Prices declined from £1,367 in February 2025 to £1,305 this year, representing a 4.5% drop.
The South West also recorded a slight decrease, with rents edging down from £1,218 to £1,208, a reduction of around 1%.
By contrast, northern regions experienced the strongest annual increases.
The North West saw the largest rise, with average rents climbing from £1,002 to £1,096, an increase of 9.3% over the year.
The North East also recorded notable growth, with rents rising 5.3% to reach an average of £806 per month.
Rent Growth in Other Regions
Several other parts of England experienced moderate rent increases.
In the East Midlands, average rents rose to £963, representing a 3.7% annual increase.
Greater London also saw rents rise, reaching an average of £2,137, which is 3% higher than the previous year.
In the South East, rents increased slightly to £1,366, marking a 1.1% yearly rise.
Meanwhile, the West Midlands recorded average rents of £1,018, up 1.8% year-on-year.
Yorkshire and the Humber also saw a modest increase, with rents rising 2.4% to £930.
Monthly Changes Remain Minimal
Looking at shorter-term trends, rental growth remained relatively steady between January and February.
Across England, the average monthly rent moved from £1,201 in January to £1,203 in February, representing a small 0.15% increase.
The North West again recorded the most significant monthly movement. In this region, rents rose from £1,057 in January to £1,096 in February, a 3.64% increase.
Void Periods Are Shortening
Goodlord’s data also highlighted changes in the time properties remain vacant between tenants, often referred to as void periods.
Following a noticeable rise in January, voids shortened again in February. Across England, the average vacancy period fell from 26 days to 22 days, a 15.4% reduction.
The South West experienced the largest improvement, where void periods dropped from 28 days to just 18 days.
In the East of England, vacancy times also reduced significantly, falling from 31 days to 19 days.
The East Midlands saw void periods decrease from 34 days to 25 days, while the South East recorded a fall from 27 days to 23 days.
Northern regions also saw shorter vacancy periods. In the North West, voids dropped from 26 days to 22 days, while the North East saw a reduction from 26 days to 23 days.
The West Midlands experienced a smaller improvement, with void periods decreasing from 30 days to 27 days.
Meanwhile, Yorkshire and the Humber recorded a modest change, with vacancy times moving from 24 days to 22 days.
Outlook for the Rental Market
Overall, the latest Goodlord figures suggest the rental market across England may be entering a more stable phase. While rents are still increasing in many areas, the pace of growth appears to be slowing compared with previous years.
If the current trend continues, tenants could benefit from a period of more moderate rental increases, while landlords may see more predictable market conditions as regulatory changes approach.
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