Rental prices across the UK have reached their highest level in two years, with new figures suggesting the market is experiencing renewed upward pressure. According to Goodlord’s latest Rental Index, annual rental inflation rose to 6.5% in June, marking the strongest year-on-year increase since August 2024.
Average monthly rents also climbed to £1,309, the highest level recorded since September 2025, representing an increase of £80 compared with the same month last year.
Renters’ Rights Act linked to higher rents
Goodlord believes the recent rise in rents may be connected to changes introduced by the Renters’ Rights Act.
William Reeve, Chief Executive Officer at Goodlord, said June’s figures represent a significant change from the relatively subdued rental market seen throughout much of 2026.
While rental prices typically increase during the summer months, Reeve suggested the sharp rise in annual rental inflation could indicate a broader shift in market conditions rather than normal seasonal demand.
Landlords may be adjusting asking rents
One factor highlighted by Goodlord is the new restrictions on rent increases introduced under the Renters’ Rights Act.
Under the proposed rules, landlords can generally increase rent only once a year using the Section 13 process. As a result, some landlords may now choose to advertise new tenancies at higher initial rents to reduce the need for future increases during the tenancy.
Goodlord says it remains unclear whether June’s increase represents a short-term adjustment to the new legislation or the beginning of a longer-term trend within the private rented sector.
Rents rising faster than inflation and wages
The report also shows that rental growth is significantly outpacing both inflation and wage growth.
June’s annual rental inflation of 6.5% was more than double the 3% Consumer Price Inflation recorded by the Office for National Statistics (ONS) in May. It also exceeded average wage growth, which stood at 3.4% over the same period.
This means rental costs are continuing to increase at a faster rate than household incomes, placing additional pressure on many tenants.
Every region in England recorded higher rents
Goodlord’s data found that rental prices increased both annually and monthly across every region in England during June.
Yorkshire and the Humber recorded the strongest annual growth, with rents rising 16% compared with June 2025.
The South West and North East also experienced annual rental inflation of 10% or more, while the East Midlands saw rents increase by 7.7% over the year.
Sharp monthly increases in some regions
Looking at monthly changes, the South West recorded the largest increase, with rents rising 29.5% between May and June.
The North East followed with a monthly increase of 15.7%, while Yorkshire and the Humber saw rents rise by 12.6%.
By comparison, the West Midlands recorded the smallest monthly increase, with rental prices rising by just 0.5%.
The latest figures suggest the rental market is becoming more competitive once again, with landlords and tenants continuing to adapt to legislative changes and ongoing supply pressures across the private rented sector.
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