The lettings market is in equilibrium once more according to a Goodlord index.
In January, rents rose by 2.4% year-on-year.
This is much lower than year-on-year rates recorded at the same time last year (January 2025), when rents were up 4.6%.
This, combined with a lengthening of void periods over the last month, may indicate cooler levels of tenant demand across England after years of intense competition for properties.
Annual rental inflation up 2% across England
The average cost of a rental property in England during January 2026 was £1,201.
This is a 2.4% increase on prices recorded at the same time last year, when rents were £1,174 per property, on average.
The latest figures means rental inflation now sits below Consumer Price Inflation, which was recorded at 3.6% in December.
It’s also 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.
| REGION | January 2025 | January 2026 | Year on Year % change |
| East Midlands | £920 | £949 | 3.2% |
| London | £2,099 | £2,139 | 1.9% |
| North East | £781 | £829 | 6.1% |
| North West | £1,017 | £1,057 | 3.9% |
| South East | £1,320 | £1,360 | 3% |
| South West | £1,214 | £1,253 | 3.2% |
| West Midlands | £978 | £999 | 2.1% |
| East of England | £1,337 | £1,312 | -1.9% |
| Yorkshire and The Humber | £898 | £915 | 2% |
| England | £1,174 | £1,201 | 2.4% |
Monthly rents rebound in January after December dip
Month-on-month, January rents increased by 2% compared to December, after a notable dip in prices over the Christmas period.
Rents climbed from £1,178 to a new average of £1,201, as the market shook off some of its winter chill.
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, there weren’t price rises across the board.
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.
| REGION | December 2025 | January 2026 | Month on month % change Previous Month |
| East Midlands | £936 | £949 | 1.4% |
| London | £2,071 | £2,139 | 3.3% |
| North East | £766 | £829 | 8.2% |
| North West | £1,048 | £1,057 | 0.9% |
| South East | £1,379 | £1,360 | -1.3% |
| South West | £1,182 | £1,253 | 6% |
| West Midlands | £980 | £999 | 1.9% |
| East of England | £1,321 | £1,312 | -0.7% |
| Yorkshire and The Humber | £922 | £915 | -0.7% |
| England | £1,178 | £1,201 | 1.96% |
Voids lengthen indicating lower demand
The early signs of subdued demand were also seen in this month’s void averages.
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 one region – London – and remained unchanged month-on-month across the East Midlands and Yorkshire and the Humber.
This article is taken from Landlord Today