"We're entering a very different rental market to the one we've grown used to over the past few years"
- William Reeve - Goodlord
Average rents across England fell 0.6% in April, according to the Goodlord Rental Index, marking the first monthly decline of 2026 and the latest sign that the rental market is losing momentum after years of sharp inflation.
Year-on-year, rents rose just 1.7% compared with April 2025, down from 2.4% in March and the smallest annual increase recorded since July 2025. For context, that figure is less than half the 4.5% annual growth seen in April last year, and continues to track below both the Consumer Price Index, which rose to 3.4% in March, and wage growth, which stood at 3.8% in April.
April's figures represent the final snapshot of market conditions before the Renters' Rights Act came into force on 1st May, bringing sweeping regulatory changes that much of the sector has been anticipating for months.
"We're entering a very different rental market to the one we've grown used to over the past few years," said William Reeve, CEO of Goodlord.
"Whilst we don't typically expect to see rapid month-on-month inflation in the early part of the year, a drop in rents, coupled with a first quarter which saw very limited price increases, points to a rental market in a holding pattern."
"This is the final rental index containing figures recorded before the implementation of the Renters' Rights Act on 1st May. What we're seeing in April's data is that stakeholders have been in a defensive crouch, anticipating the impact of regulatory changes."
"With the new legislation now in force, the big question is whether this cooler backdrop gives the sector a chance to reset on a more sustainable footing, or whether the shock of new rules jolts supply, demand and therefore prices back into a more volatile phase."
Month-on-month rents fall after a steady first quarter
After incremental growth throughout the first three months of the year, the average cost of a new rental in England dropped from £1,212 in March to £1,205 in April. The North East recorded the sharpest regional decline, with rents falling 4.9% from £820 to £780.
Both the West Midlands and Yorkshire and the Humber saw falls of 2.8%, while the South East dropped 1.6%, from £1,403 to £1,381.
Not every region moved in the same direction, however. London rents rose 1.3% over the month, and the East Midlands saw the largest regional increase, with average prices climbing from £947 to £973, a 2.7% rise.
Monthly rental averages typically hold steady at this time of year, making April's fall more notable in context.
Inflation cools sharply across the North
Northern regions had been significantly outpacing the rest of the country on annual rental inflation as recently as March, but April's figures point to a sharp correction. Yorkshire and the Humber, the North West and the North East had recorded year-on-year inflation of 6.6%, 6.3% and 5.9% respectively in March. By April, those figures had fallen to 2.5%, 2.8% and -0.9%.
The biggest annual shift in April came in Greater London, where rents were up 4.8% year-on-year, followed by the East Midlands at 4.0%. Four regions, the North East, South West, West Midlands and East of England, saw average rents fall over the twelve months to April.
Voids lengthen again
Void periods, the length of time a property sits vacant between tenancies, increased from 22 to 24 days nationally in April. The East of England saw the most dramatic change, with voids jumping from 16 to 25 days.
London remained the fastest-moving market, with an average void of just 17 days, a full week below the national average. Yorkshire and the Humber recorded the longest void periods in April, at 29 days.
With the Renters' Rights Act now in force, data from the coming months will reveal whether the current cooldown gives the rental market room to stabilise, or whether the weight of new regulation pushes supply, demand and prices into a more turbulent phase.
