The index shows that in June the average cost of a rental property in England was £1,309 compared £1,229 12 months ago.

The first five months of the year saw historically low inflation across the PRS, as landlords, letting agents and their tenants awaited the impact of May’s Renters’ Rights Act.

Rental inflation has sat at just 1.7% throughout April and May.

Goodlord suggests June’s figures may represent the first evidence that the disruption many experts anticipated is starting to hit the market.

Following months of relative stagnation, rents were up 8.1% in June, compared to the prices recorded in May.

In May, the average monthly cost of a new tenancy was £1,211 and increased to £1,309 in June, marking the largest month-on-month increase in rents since last summer, when rents jumped 17.7% between June and July 2025.

Average monthly rents in England are now at their highest level since September 2025, when they stood at £1,389.

Rents increased both year-on-year and month-on-month across every region in England in June.

The largest year-on-year increase came in Yorkshire and the Humber, where rents were up 16% since June 2025.

The South West and North East each recorded annual rental inflation of 10% or above, while the East Midlands saw a year-on-year increase of 7.7%

Having topped the charts for year-on-year rental inflation in both April and May, London recorded an annual price increase of 5.6% in June.

In terms of month-on-month changes, the South West saw by far the largest increase, with rents down south up 29.5% between May and June.

The North East saw rents jump 15.7% month-on-month, while Yorkshire and the Humber recorded a rise of 12.6%.

The smallest monthly increase came in the West Midlands, where rents were up 0.5% from May to June.

Goodlord chief executive William Reeve says: “These figures show a stark shift away from the trends we’ve seen throughout 2026 so far. After months of warnings about the potential consequences of the Renters’ Rights Act, June’s Index may well give us an indication of the impact it’s starting to have on the ground.”

“We always expect rents to pick up across the summer months, but to see year-on-year inflation hit a near two-year high suggests a clear turning point in what has thus far been a cool market in 2026.”

“One possible explanation for June’s spike in rents is the change the RRA has brought to landlords’ ability to increase rents during tenancy. With landlords now only allowed to raise rents once a year via Section 13, there’s a clear incentive to begin new tenancies at higher rates than they may have previously.”

“The coming months will reveal whether June’s figures mark a one-time recalibration of the market, or the beginning of a new normal across the PRS.”