Rental price growth has slowed significantly, with annual inflation now running below both consumer prices and wage growth for the first time in years. For landlords, the shift signals a market returning to equilibrium after years of intense competition.
The latest Goodlord Rental Index shows rents in England rose by 2.4 percent year-on-year in January 2026, down sharply from 4.6 percent recorded at the same point last year. The average monthly rent now stands at £1,201 – a modest increase from £1,174 twelve months ago.
With consumer price inflation at 3.6 percent and wage growth at 4.5 percent, tenants are seeing real-terms relief after a sustained period of rising rents that outpaced earnings.
Regional variations show mixed picture
The North East recorded the highest annual rent growth at 6.1 percent, with average rents reaching £829 per month. The East Midlands, North West, South East and South West all recorded increases above 3 percent.
The East of England bucked the trend entirely, recording a 1.9 percent year-on-year fall in rents – the only region to see prices drop.
London rents grew by just 1.9 percent annually to £2,139, well below the national average growth rate despite remaining the most expensive region by some margin.
Void periods lengthen as demand softens
The cooling market is also visible in void periods, which lengthened from 23 to 26 days in January. Six of nine regions saw voids increase, with the most dramatic shift in the North West where empty periods jumped from 18 to 26 days.
The East of England saw voids rise from 21 to 32 days, suggesting tenant demand has weakened considerably in the region alongside falling rents.
Only London recorded shorter void periods, reflecting continued pressure in the capital despite slower rent growth. This aligns with analysis showing tenants are increasingly trapped in their current properties due to affordability constraints.
What the data means for landlords
The Goodlord Rental Index tracks over 100,000 tenancy agreements monthly, providing one of the most comprehensive pictures of market conditions.
For buy-to-let investors, the figures suggest the exceptional rental growth seen in 2023 and 2024 is normalising. While rents continue to rise, the rate of increase no longer outstrips inflation or wages – potentially easing political pressure on the sector.
However, landlords in regions like the North East may still see strong returns, while those in the East of England could face tighter margins as rents edge backwards.
Editor’s view
A return to more balanced conditions should be welcomed. Sustainable rent growth benefits landlords and tenants alike – and takes some heat out of the political debate around private renting.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance
Published: 6 February 2026
Sources: Goodlord Rental Index, ONS
Related reading: Rental growth slows to four-year low but supply pressures keep market tight
