Rents across England remained largely unchanged in February, reflecting continued subdued demand in the rental market.
The Goodlord Rental Index shows that average rents rose 2% year-on-year, slower than both the latest inflation rate and the growth seen at the same time last year. Based on verified tenancy agreements, the Index tracks actual market transactions rather than asking prices, providing a clear picture of true rental costs.
In February 2026, the average rent in England was £1,203 per property, up from £1,180 in February 2025. By comparison, rents grew 4% year-on-year in February 2025 and 2.4% in January 2026.
At a regional level, year-on-year rental costs have actually dropped in some regions. Tenants in the East of England are currently enjoying prices that are 4.5% lower than in February 2025. And those in the South West have also seen a 1% annual reduction in average rents.
Elsewhere, the North of England continues to lead the pack when it comes to rental growth, similar to trends tracked last month. The North West saw year-on-year prices rise by over 9% during February (up from £1,002 per property last year, to £1,096 this year). And the North East posted a 5% rise.
REGION | February 2025 | February 2026 | Year on Year % change |
East Midlands | £929 | £963 | 3.7% |
Greater London | £2,075 | £2,137 | 3% |
North East | £766 | £806 | 5.3% |
North West | £1,002 | £1,096 | 9.3% |
South East | £1,351 | £1,366 | 1.1% |
South West | £1,218 | £1,208 | -1% |
West Midlands | £1,000 | £1,018 | 1.8% |
East of England | £1,367 | £1,305 | -4.5% |
Yorkshire and The Humber | £908 | £930 | 2.4% |
England | £1,180 | £1,203 | 2.00% |
Across England, month-on-month rents remained very sticky. In January, the average cost of rent was £1,201. In February, this rose by just 0.15% to £1,203 – a difference of just £24 per year.
The biggest rise was, once again, seen in the North West. Prices here rose by nearly 4% – up from £1,057 to £1,096.
The biggest fall was recorded in the South West, where prices dropped by over 3.5% – down from £1,253 in January to £1,208 in February.
Whilst month-on-month rental averages further reinforce the picture that the market is softening, the Index typically records minimal month-on-month rental price changes between January and February each year.
REGION | January 2026 | February 2026 | Month on month % change Previous Month |
East Midlands | £949 | £963 | 1.49% |
Greater London | £2,139 | £2,137 | -0.08% |
North East | £829 | £806 | -2.70% |
North West | £1,057 | £1,096 | 3.64% |
South East | £1,360 | £1,366 | 0.41% |
South West | £1,253 | £1,208 | -3.59% |
West Midlands | £999 | £1,018 | 1.93% |
East of England | £1,312 | £1,305 | -0.52% |
Yorkshire and The Humber | £915 | £930 | 1.56% |
England | £1,201 | £1,203 | 0.15% |
Despite softening price inflation, voids shortened during February after a particularly sharp increase during January. Across the month, voids – the length of time a property is vacant between lets – decreased from 26 days to 22 days. This is a reduction of 15%.
Voids shortened in all regions monitored. The biggest shift was seen in the South West, where voids shortened from 28 to 18 days. The smallest reduction was recorded in Yorkshire and the Humber, where voids moved from 24 days to 22 days.
Overall, void periods are longer on average when compared with the same time last year. In February 2025, voids were 20 days, compared to 22 days currently.
January 2026 | February 2026 | Month-on-month % change | Year-on-year % change | |
East Midlands | 34 | 25 | -26.5% | 13.64% |
London | 19 | 17 | -10.5% | 13.33% |
North East | 26 | 23 | -11.5% | 27.78% |
North West | 26 | 22 | -15.4% | 4.76% |
South East | 27 | 23 | -14.8% | 27.78% |
South West | 28 | 18 | -35.7% | -18.18% |
West Midlands | 30 | 27 | -10.0% | 35.00% |
East of England | 31 | 19 | -38.7% | -9.52% |
Yorkshire and The Humber | 24 | 22 | -8.3% | 0.00% |
England average | 26 | 22 | -15.4% | 10.00% |
William Reeve, CEO of Goodlord, commented: “Another month of cooling rental inflation reinforces the picture that the market is returning to some form of equilibrium after a series of record-breaking years. This is good news for tenants, particularly if rental price increases continue to sit below wage growth figures.
“It’s also a positive sign that there isn’t a supply shortage, despite the wider regulatory turbulence that landlords are navigating. If these trends continue into spring, it could provide a relatively benign backdrop for the Renters Rights Act implementation on 1 May.”
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Read the orginal article: https://propertyindustryeye.com/rental-price-increases-continue-to-sit-below-wage-growth-figures/?utm_source=rss&utm_medium=rss&utm_campaign=rental-price-increases-continue-to-sit-below-wage-growth-figures
