The average cost of a rental property in England during January 2026 was £1,201, a rise of 2.4% compared to the same period last year, Goodlord’s latest data reveals. across England.

This is a far lower level of rental inflation when compared to figures recorded in January last year, when rents were up 4.6% year-on-year, indicating a softening of the pace of price increases over recent months.

The latest figures means rental inflation now sits below consumer price inflation, which was recorded at 3.6% in December, and below wage growth, which was recorded at 4.5% over the last quarter.

This January, all but one of the nine regions monitored by Goodlord recorded an annual rise in the cost of rent.

The most significant price shift was seen in the North East, where rents are up 6% year-on-year.

The East Midlands, North West, South East, and South West, all recorded inflationary increases of over 3%.

The only region to record a year-on-year reduction in rental prices was the East of England, where rents dipped by 1.9% compared to last January.

On a monthly basis, January rents increased by 2% compared to December, after a notable dip in prices over the Christmas period.

Data shows that rents climbed from £1,178 to a new average of £1,201.

The most sizeable shift was recorded in the North East, where prices rose by over 8% in January.

The South West saw month-on-month rises of 6% and prices rose in London by 3%.

However, the South East, East of England, and Yorkshire and the Humber all recorded slight declines compared to December figures, indicating softening demand in certain regions.

Elsewhere, void periods lengthened in January, rising from 23 days to 26 days.

The index recorded a lengthening of voids in six out of the nine regions monitored.

Averages jumped from 18 days to 26 days in the North West, and were up from 21 to 32 days in the East of England.

Voids only shortened in London  and remained unchanged month-on-month across the East Midlands and Yorkshire and the Humber.

Goodlord chief executive William Reeve says: “Whilst prices will continue to go up, the underlying signs point to what could be the return of some equilibrium to the market.”

“The lower pace of annual rental inflation, especially compared to last January, combined with lengthening voids may indicate the early signs of softening demand.”

“With current rental inflation now sitting well below the CPI and wage growth, this could swing the pendulum of power slightly back towards tenants following several years of ferocious competition for properties.”

“However, the true wild card in 2026 will be the implementation of the Renters’ Rights Act in May, which could upturn rental metrics once again.”