Average rents in England rose by 0.5 percent in May, but annual rental inflation held at just 1.7 percent for a second month running, according to the latest Goodlord Rental Index.
The data puts the average monthly rent at £1,211, up from £1,205 in April but still slightly below March’s £1,212 level. Goodlord said that makes 2026 the first year since 2020 in which rents in May have remained lower than they were two months earlier in March.
For landlords, the immediate message is that rent growth is still positive, but the pace has slowed sharply. Goodlord said year-on-year inflation was less than half the 3.6 percent recorded in May 2025, suggesting the rental market has cooled even before any longer-term impact from the Renters’ Rights Act becomes clear.
Rental inflation stays subdued despite May uptick
Goodlord said the latest figures were based on verified tenancy transactions rather than advertised asking rents, giving landlords a clearer view of what tenants are actually paying. The index showed annual rent inflation in May remained below both the latest inflation reading and recent wage growth, pointing to a market that has lost some of the upward pressure seen over the past two years.
Regional data showed a mixed picture. London again recorded the strongest annual growth, with average rents rising 5.6 percent to £2,194. The North East also rebounded after a sharp April fall, while rents in the South West and East of England were lower than a year earlier.
William Reeve, chief executive of Goodlord, said the market was still adjusting one month after the Renters’ Rights Act came into force. He said average rents had recovered slightly from April’s drop, but the wider picture pointed to a sector being pulled between weaker demand pressures and tighter supply.
Reeve said reduced net migration was easing demand, while continued under-delivery in housebuilding and the early effects of the new rental rules could still limit available stock. That matters for landlords because it suggests local conditions, rather than a single national trend, may shape pricing power through the rest of 2026.
This follows Landlord Knowledge’s earlier Goodlord coverage in May, which reported the first monthly rent fall of 2026. It also sits alongside recent ONS rent data covered by Landlord Knowledge, which showed UK private rents still rising nationally even as house price growth stalled.
What this means for landlords
- If you’re reviewing rents: the data points to slower growth, so large increases may be harder to justify unless local supply is especially tight.
- Watch for: whether the ban on above-asking offers starts pushing landlords and agents to list higher rents upfront over the next few months.
- Bottom line: national rent inflation has cooled, but landlords in stronger micro-markets may still have room to hold or edge up pricing.
Why the next few months matter
Goodlord said it was too early to judge whether the Renters’ Rights Act would trigger the volatility many in the sector had feared. That caution is sensible. May’s small monthly rise does not yet point to a fresh surge, but it does show demand has not dropped away altogether.
For landlords, one practical risk is that the new ban on accepting offers above the advertised rent may change pricing behaviour. If agents start listing homes at more ambitious headline rents to compensate, annual comparisons later this summer could look firmer even if underlying affordability remains stretched. The Goodlord Rental Index will be worth watching closely for that shift.
Goodlord’s figures also suggest the market is becoming more regional. London remains stronger than many other areas, but several regions are now showing either very modest annual growth or outright falls. For landlords weighing refinance, acquisition or disposal decisions, that makes local rental evidence more important than broad national headlines.
Editor’s view
Slower rent growth will not worry every landlord. In some ways it points to a market that is settling after a period of exceptional strain. But if supply remains tight while pricing power weakens, landlords will need sharper local knowledge and more disciplined rent setting than they did a year ago.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 1 June 2026
Sources: Goodlord Rental Index, ONS inflation data
Related reading: Goodlord: rents fall 0.6% as April market cools
