Rental inflation remained subdued across England during March, with year-on-year rent increases standing at just 2.4 percent – well below the 4.6 percent recorded at the same time last year. However, with the Renters Rights Act set to take effect on 1 May, this period of relative calm could soon give way to significant market disruption.
The latest Goodlord Rental Index, based on thousands of verified tenancy transactions, shows that the average cost of a rental property in England in March 2026 was £1,212 – a 2.4 percent increase on March 2025. Month-on-month, rents rose by just 0.8 percent, or less than £10 per property.
North-South divide widens as southern regions see falling rents
The national picture masks a growing regional divergence. Northern regions continue to see strong rental growth, with Yorkshire and The Humber recording a 6.6 percent year-on-year increase, followed by the North West at 6.3 percent and the North East at 5.9 percent.
In contrast, the East of England saw rents fall 2.6 percent year-on-year, while the South West recorded a 0.3 percent decline. No other region outside the North saw annual increases above 2.8 percent.
This follows Landlord Knowledge’s analysis of rental affordability, which found that wage growth has now outpaced rent rises for the first time in recent years, easing pressure on tenants while reducing yield growth for landlords in many areas.
Market appears to be waiting for RRA
Void periods – the time a property sits empty between tenancies – remained flat at 22 days across England, unchanged from February. The fastest turnaround was in the East of England at just 16 days, while the North East saw voids lengthen from 23 to 26 days.
The consistently limited changes seen in early 2026 suggest a market holding its breath ahead of regulatory change. The March data from HomeLet showed a similar pattern of stabilisation after months of cooling.
William Reeve, CEO of Goodlord, said the figures would be welcomed by tenants who continue to see wage growth outstrip rental inflation. “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,” he said.
However, Reeve warned that the current calm may not last. “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,” he said.
“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.”
What this means for landlords
- If you’re in the North: Yields remain strong with above-inflation rent growth – Yorkshire, the North West and North East continue to outperform southern regions
- If you’re in the South: Flat or falling rents in the East and South West mean tighter margins – factor this into any purchase or refinancing decisions
- Watch for: Market volatility from 1 May onwards as the RRA takes effect – prepare for potential tenant notice periods and rent increase requests
- Bottom line: The current lull may be temporary – use this window to ensure tenancy documentation and compliance are RRA-ready
Editor’s view
The numbers paint a picture of a market in suspended animation. Landlords and tenants alike seem to be waiting to see what the RRA brings before making major decisions. That hesitation is understandable, but it’s also a warning sign – the pent-up activity could hit all at once in May.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 April 2026
Sources: Goodlord Rental Index March 2026
Related reading: Rental affordability eases as wage growth outpaces rent rises
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
