THE PROPERTY FILTER TAKE
Goodlord's July 2026 rental index shows average England rents hit £1,309 in June - a 6.5% year-on-year jump after five months of near-flat 1.7% annual inflation.
For HMO landlords, contracting void periods and rising room rates could ease yield pressure - but only if your licence costs and compliance overhead are already priced in.
You may wish to run your current room rates through a stress test before your next licence renewal conversation with the council.
England's average rent hit £1,309 in June 2026 - a 6.5% year-on-year rise according to Goodlord's July 2026 rental index. That follows five months in which annual inflation sat at just 1.7%, as landlords waited to see what the Renters' Rights Act (legislation abolishing Section 21 no-fault evictions in England, effective 1 May 2026) would mean in practice.
The waiting is over. Landlords are repricing. And for HMO (house in multiple occupation) operators, the shift cuts both ways.
The data behind the spike
Goodlord's index puts the June 2026 national average at £1,309, up from £1,229 in June 2025. The annual rate jumped from 1.7% in May to 6.5% in a single month. That kind of acceleration does not happen without a structural cause.
Void periods (the time a property sits empty between tenants) contracted to 20 days nationally in June, down from 21 days in May, per Goodlord's data. For HMO landlords, that matters directly. An empty room still costs you the mortgage, the licence fee, and the compliance overhead. Shorter voids protect your cash flow.
The regional picture is where it gets specific. Goodlord's data shows the South West recorded the largest month-on-month increase - rents up 29.5% between May and June. The North East posted 15.7% month-on-month growth. Yorkshire and the Humber recorded 12.6%. If you hold HMOs in Bristol, Exeter, Newcastle, Sunderland, Leeds, or Sheffield, room rate data shows the biggest movement is happening in your markets.
Leeds is worth naming directly. The council operates one of England's most active additional HMO licensing schemes, covering properties with three or more tenants in most wards. Its market rents have moved sharply this summer. If your rooms are priced on data from twelve months ago, you may be leaving yield on the table. The Property Filter HMO valuation calculator can show you exactly where current market rents put your numbers.
What this means for HMO portfolios
The first five months of 2026 told a different story. Annual inflation across the private rented sector (PRS) sat at just 1.7% as landlords held back, watching the RRA take shape. A Goodlord survey of more than 1,200 landlords found that 72% were not currently selling properties. That is a marked reversal from September 2025, when 35% had sold or attempted to sell at least one property in the prior 12 months.
That wait-and-see period appears to be closing. June's rent spike looks like the first sign that landlords who held on are now repricing to reflect higher demand and the new compliance environment.
For HMO operators, the practical questions are specific. Check your licence: the council set your fee before these rent movements. The market has moved; your income has changed; your cost base may not have. Article 4 (a planning direction restricting conversion of family homes to HMOs) remains active across many of these high-growth areas - Bristol, Leeds, and Newcastle among them. That limits new supply, which gives further support to room rates.
You may wish to stress-test your yield at the new figures before adjusting room rates. Higher rents do not automatically mean higher net returns if compliance costs have also risen. If any of your rooms serve housing benefit tenants, the LHA rates map can show whether Local Housing Allowance (LHA) rates have kept pace with the current market. For broader context on how the RRA fits within HMO investment strategy, see the property investment strategies hub.
Key takeaways
Average England rents hit £1,309 in June 2026 - up 6.5% year-on-year, per Goodlord's July 2026 index
Annual rental inflation accelerated from 1.7% in May to 6.5% in a single month
Void periods contracted to 20 days nationally in June, down from 21 days in May (Goodlord)
The South West (+29.5%), North East (+15.7%) and Yorkshire and the Humber (+12.6%) saw the biggest month-on-month rent jumps per Goodlord
72% of landlords in a Goodlord survey of 1,200+ are not currently selling - the anticipated PRS exit has not materialised
England's average rent hit £1,309 in June 2026 - a 6.5% year-on-year rise according to Goodlord's July 2026 rental index. That follows five months in which annual inflation sat at just 1.7%, as landlords waited to see what the Renters' Rights Act (legislation abolishing Section 21 no-fault evictions in England, effective 1 May 2026) would mean in practice.
The waiting is over. Landlords are repricing. And for HMO (house in multiple occupation) operators, the shift cuts both ways.
The data behind the spike
Goodlord's index puts the June 2026 national average at £1,309, up from £1,229 in June 2025. The annual rate jumped from 1.7% in May to 6.5% in a single month. That kind of acceleration does not happen without a structural cause.
Void periods (the time a property sits empty between tenants) contracted to 20 days nationally in June, down from 21 days in May, per Goodlord's data. For HMO landlords, that matters directly. An empty room still costs you the mortgage, the licence fee, and the compliance overhead. Shorter voids protect your cash flow.
The regional picture is where it gets specific. Goodlord's data shows the South West recorded the largest month-on-month increase - rents up 29.5% between May and June. The North East posted 15.7% month-on-month growth. Yorkshire and the Humber recorded 12.6%. If you hold HMOs in Bristol, Exeter, Newcastle, Sunderland, Leeds, or Sheffield, room rate data shows the biggest movement is happening in your markets.
Leeds is worth naming directly. The council operates one of England's most active additional HMO licensing schemes, covering properties with three or more tenants in most wards. Its market rents have moved sharply this summer. If your rooms are priced on data from twelve months ago, you may be leaving yield on the table. The Property Filter HMO valuation calculator can show you exactly where current market rents put your numbers.
What this means for HMO portfolios
The first five months of 2026 told a different story. Annual inflation across the private rented sector (PRS) sat at just 1.7% as landlords held back, watching the RRA take shape. A Goodlord survey of more than 1,200 landlords found that 72% were not currently selling properties. That is a marked reversal from September 2025, when 35% had sold or attempted to sell at least one property in the prior 12 months.
That wait-and-see period appears to be closing. June's rent spike looks like the first sign that landlords who held on are now repricing to reflect higher demand and the new compliance environment.
For HMO operators, the practical questions are specific. Check your licence: the council set your fee before these rent movements. The market has moved; your income has changed; your cost base may not have. Article 4 (a planning direction restricting conversion of family homes to HMOs) remains active across many of these high-growth areas - Bristol, Leeds, and Newcastle among them. That limits new supply, which gives further support to room rates.
You may wish to stress-test your yield at the new figures before adjusting room rates. Higher rents do not automatically mean higher net returns if compliance costs have also risen. If any of your rooms serve housing benefit tenants, the LHA rates map can show whether Local Housing Allowance (LHA) rates have kept pace with the current market. For broader context on how the RRA fits within HMO investment strategy, see the property investment strategies hub.
Key takeaways
Average England rents hit £1,309 in June 2026 - up 6.5% year-on-year, per Goodlord's July 2026 index
Annual rental inflation accelerated from 1.7% in May to 6.5% in a single month
Void periods contracted to 20 days nationally in June, down from 21 days in May (Goodlord)
The South West (+29.5%), North East (+15.7%) and Yorkshire and the Humber (+12.6%) saw the biggest month-on-month rent jumps per Goodlord
72% of landlords in a Goodlord survey of 1,200+ are not currently selling - the anticipated PRS exit has not materialised
Frequently asked questions
Frequently asked questions
Did the Renters' Rights Act cause this rent spike?
Should I increase my HMO room rates?
Do tighter void periods affect HMOs differently?
What about housing benefit tenants in my HMO?
