Landlords across England have made a bold move to hike upfront rents by as much as £100 in response to the recently introduced Renters' Rights Act, sparking concerns about affordability for renters.
According to figures from Goodlord, the average monthly rent for a new tenancy in England shot up to £1,309 in June, a substantial 6.5% increase compared to £1,229 a year earlier, and an 8.1% rise from May's average of £1,211.
The Renters' Rights Act, which came into effect in May, has introduced provisions that restrict landlords to increasing rents only once a year via a Section 13 notice. Industry experts suggest this new limitation is incentivising landlords to set higher initial rents for new tenancies, as they face reduced flexibility for future adjustments within a tenancy agreement.
The upward trend in rental prices was not confined to specific areas, with every region of England recording increases on both an annual and monthly basis. Yorkshire and the Humber experienced the most pronounced annual growth, with rents soaring by 16%. The South West and North East also saw substantial year-on-year increases exceeding 10%.
On a monthly basis, the South West led with a 29.5% jump between May and June, followed by the North East at 15.7% and Yorkshire and the Humber at 12.6%. The West Midlands recorded the smallest monthly increase at 0.5%.
William Reeve, CEO of Goodlord, commented on the figures, highlighting a 'stark shift' from trends observed earlier in 2026. He noted that while a summer pickup in rents is expected, the near two-year high in year-on-year inflation points to a clear turning point. Reeve suggested that the changes brought by the Renters' Rights Act could be a key factor driving landlords to commence new tenancies at elevated rates.
For first-time buyers and renters, escalating rental costs can make it harder to save for a deposit, potentially extending the time needed to get onto the property ladder. Existing homeowners may also observe similar pressures in the rental market if they consider letting out properties.