England rents surge 6.5% as Renters’ Rights Act takes effect

Average private‑rented sector rents in England rose sharply in June, with the Goodlord Rental Index showing the typical new tenancy rent at £1,309 – a 6.5% year‑on‑year increase and the biggest monthly jump since July 2025. The surge followed the May‑2026 introduction of the Renters’ Rights Act, which limits landlords to a single rent increase per year via a Section 13 notice. Analysts suggest landlords are compensating by setting higher initial rents. Regional data show annual growth of 16% in Yorkshire and the Humber, while the South West recorded a 29.5% month‑on‑month rise.

Rental yields across England and Wales also edged higher, reaching an average of 7.8% annually, though six of ten regions posted a quarterly dip. The North East led with a 9.2% yield despite a short‑term fall. Lender Fleet Mortgages noted expanding landlord activity, with corporate limited‑company borrowing accounting for 78% of buy‑to‑let finance. The market’s increased stability has allowed lenders to re‑introduce products and make price cuts, signalling a more professionalised landlord sector.