Nikka Sulton

Tenants taking on new rental properties are now paying an average of £1,581 a month, according to Goodlord’s Rental Index for September 2026.

The figure represents a 4.9% increase compared with September last year. In annual terms, that means the average tenant is paying around £888 more.

The regional picture is even more striking. New-let rents in the North East have increased by 14% over the past year to £1,000 a month, while rents in the East of England recorded a small decline.

Official figures from the Office for National Statistics (ONS), which cover the wider private rented sector rather than just new lets, also show stronger rental growth in northern regions.

For landlords, the figures provide a useful indication of current market conditions when reviewing rents, preparing for a re-let or assessing whether rental income is keeping pace with property values.

UK Rental Growth Accelerates

Goodlord recorded an average new-let rent of £1,581 in September, compared with £1,507 a year earlier.

That £74 monthly increase equates to an additional £888 over a year for a tenant.

Rents increased by 0.9% between August and September. The North East recorded the largest monthly increase at 5.6%, followed by the North West at 3%.

Yorkshire and the Humber was the only region tracked by Goodlord to record a monthly decline, with rents falling by 0.2%.

Wales recorded the strongest increase among the UK’s nations, with rents rising by more than 7%. England saw growth of 5.5%, while Scotland recorded an increase of just under 3%.

Goodlord also reported that average void periods shortened slightly from 21 days in August to 20 days in September. The North East had the shortest average void period at 11 days, while Yorkshire and the Humber recorded the longest at 29 days.

The North East’s 14% annual increase takes the average new-let rent from £878 to £1,000. This represents an increase of £122 a month, or £1,464 a year, for a tenant taking on an average new property.

Goodlord noted that it introduced a new methodology for this month’s figures, meaning comparisons with some of its earlier reports should be treated with caution.

Goodlord and ONS Show Different Rental Trends

The two main measures of rental growth provide slightly different pictures of the market.

Goodlord’s figures are based on tenancy data from more than 3,000 letting agencies using its platform. They therefore provide an indication of the rents being achieved on new and recently agreed tenancies.

The ONS measure covers the entire private rented sector, including existing tenants whose rent may not have changed for some time. As a result, its figures tend to change more gradually.

Area	Goodlord: new lets, year to Sept 2026	ONS: all tenancies, year to Aug 2026
UK	+4.9% (£1,581)	+3.8% (£1,400)
England	+5.5%	+4.0% (£1,459)
Wales	over +7%	+4.3% (£846)
Scotland	just under +3%	+1.1% (£1,013)
North East	+14% (£1,000)	+5.8% (£788)
East of England	-0.4%	+3.5% (£1,289)

The difference between the two measures is particularly noticeable in the North East. Goodlord’s new-let figure is substantially higher than the ONS average, suggesting that existing tenants in the region may be paying less than current market rents.

For landlords, Goodlord’s figures can therefore be useful when considering what a property could achieve after a tenant leaves, while the ONS data provides broader context for existing rents.

Northern Regions Lead Rental Growth

ONS figures show that the North East and North West recorded the fastest rental growth among the regions, both increasing by 5.8% in the year to August 2026.

The difference between northern and southern markets is also reflected in rental yields.

Region / nation	Average rent (Aug 2026)	Annual change	Extra per year vs Aug 2025	Average house price (Jul 2026)	Benchmark gross yield
North East	£788	+5.8%	£516	£166,943	5.7%
North West	£969	+5.8%	£636	£221,445	5.3%
Yorkshire and The Humber	£865	+4.9%	£480	£209,116	5.0%
West Midlands	£982	+4.9%	£564	£250,880	4.7%
South West	£1,245	+4.4%	£636	£302,298	4.9%
East Midlands	£922	+3.7%	£396	£242,274	4.6%
East of England	£1,289	+3.5%	£528	£337,518	4.6%
London	£2,332	+3.5%	£948	£550,037	5.1%
South East	£1,426	+3.0%	£504	£380,878	4.5%
Wales	£846	+4.3%	£420	£215,037	4.7%
Scotland	£1,013	+1.1%	£132	£196,349	6.2%

The figures show that some of the UK’s cheaper property markets are experiencing stronger rental growth while also producing higher benchmark gross yields.

The North East, for example, combines the strongest rental growth among the English regions with an average property price of £166,943 and a benchmark gross yield of 5.7%.

By contrast, the South East recorded rental growth of 3%, while its average property price was £380,878 and its benchmark yield was 4.5%.

These figures are only broad indicators, as rental properties and sold properties are not necessarily comparable. Individual yields will depend on the type, location and condition of a property, as well as its purchase price and rental income.

Migration Could Affect Rental Demand

Goodlord chief executive William Reeve suggested that slower rental growth in some parts of the country could partly reflect falling net migration.

Lower migration could reduce some of the pressure on rental supply, particularly in areas and cities that attract large numbers of new arrivals.

ONS figures show that long-term net migration fell to 171,000 in the year ending December 2025. That was almost half the 331,000 recorded a year earlier and significantly below the peak of 944,000 recorded in the year to March 2023.

However, rents are still increasing across much of the country, so there is little evidence that rental demand has disappeared.

London’s annual rental growth of 3.5% was below the England average of 4%, which could indicate that slower population growth is having some effect in markets where rental demand has historically been particularly strong.

Landlords Need to Review Rents Carefully

Landlords reviewing rents need to consider both the wider market and the specific property they own.

Regional averages can provide a useful starting point, but they should not be treated as evidence of the correct rent for an individual property. Comparable properties of a similar size, condition and location are likely to provide a more accurate indication.

In England, landlords also need to follow the rental increase rules introduced under the Renters’ Rights Act.

Since 1 May 2026, rent can generally only be increased once a year. Landlords must use Form 4A and provide at least two months’ notice. A rent increase cannot be introduced during the first year of a tenancy.

Tenants can also challenge a proposed increase if they believe it is above the open market rent for the property.

This makes it particularly important for landlords to keep evidence of comparable local rents before proposing an increase.

What the Latest Figures Mean

The latest data highlights significant differences between rental markets across the UK.

The North East stands out, with Goodlord recording a 14% annual increase in new-let rents to £1,000 a month. The ONS also places the North East among the regions with the fastest rental growth, although its broader measure shows a more modest 5.8% increase.

The East of England presents a very different picture, with Goodlord recording a 0.4% fall in new-let rents despite the ONS reporting a 3.5% increase across all private tenancies.

For landlords, the figures reinforce the importance of looking beyond national averages. Local rental demand, property values and the difference between new-let and existing rents can all have a significant impact on investment returns.