"The latest figures will be welcomed by tenants, who continue to see wage growth outstrip rental inflation and rents rising less quickly than other consumer prices"
- William Reeve - Goodlord
Rental inflation across England remained subdued in March 2026, with year-on-year increases sitting at 2.4%, according to the Goodlord Rental Index.
That figure is considerably lower than the 4.6% recorded at the same point last year and continues to trail both consumer price inflation and wage growth. With the Renters' Rights Act due to take effect on 1 May, however, the current period of calm may prove short-lived.
The Goodlord Rental Index draws on thousands of verified tenancy transactions each month, reflecting confirmed tenant contracts rather than listing prices or aspirational landlord valuations.
Rents climbing slowly year-on-year
The average cost of a rental property in England in March 2026 was £1,212, up 2.4% from £1,184 twelve months earlier. While annual inflation nudged up slightly from the 2% recorded in February, it remains broadly in line with January's figure and well below the pace of increases seen throughout 2025.
Rental inflation also continues to sit beneath the latest Consumer Price Index reading of 3.2% and wage growth of 3.9%, offering some relief to renters whose earnings are, for now, rising faster than their housing costs.
North-South divide sharpens
The national picture of cooling demand masks a pronounced regional split. Northern England is outpacing the rest of the country on annual rental growth by a considerable margin.
The three regions with the highest year-on-year rent increases in March 2026 were:
- Yorkshire and The Humber: 6.6%
- North West: 6.3%
- North East: 5.9%
No other region recorded year-on-year growth above 2.8%. At the other end of the spectrum, the East of England saw rents fall 2.6% compared with March 2025, while the South West recorded a marginal 0.3% decline.
Month-on-month movements told a slightly different story in the North West. After a strong February, average rents in the region fell 2.7% from £1,096 to £1,066 in March, suggesting some degree of market correction following a 4% rise the previous month. The sharpest monthly increase came in Yorkshire and The Humber, where rents climbed 3.2%, from £930 to £959.
Void periods hold steady nationwide
Void periods, the length of time a property sits empty between tenancies, remained unchanged at 22 days across England in March, matching February's figure.
The North East and South West saw the largest increases in void lengths, rising to 26 days and 21 days respectively. The East of England recorded the fastest turnaround, with voids of just 16 days, nearly a week below the national average.
Calm before the storm?
"The latest figures will be welcomed by tenants, who continue to see wage growth outstrip rental inflation and rents rising less quickly than other consumer prices," said William Reeve, chief executive of Goodlord.
"Whilst minimal month-on-month changes are to be expected at this time of year, the year-on-year figures give a clear picture of a market that has significantly cooled in recent months."
"However, there's a possibility that what we're witnessing is the calm before the storm. With the implementation of the Renters' Rights Act now only a month away, we could simply be in a holding pattern before a torrent of new market forces are unlocked. The new legislation could see a spike in gazundering, tenants giving notice, and landlords increasing rents. In a few months, this market picture could look very different indeed."
Limited month-on-month movement is not unusual in the early part of the year. But the consistently muted changes seen throughout the opening months of 2026 point to a market braced for the disruption the Renters' Rights Act may bring when it lands in May.
