THE PROPERTY FILTER TAKE
Year-on-year rental inflation across England hit 6.5% in June 2026 - the highest level in nearly two years - with average rents reaching £1,309 per month, up from £1,229 twelve months earlier, according to Goodlord's rental index (published 2 July 2026).
For HMO (house in multiple occupation) landlords, this matters beyond the headline figure: the Renters' Rights Act (RRA), which came into force in May 2026, limits in-tenancy rent increases to once per year via Section 13, creating a direct incentive to price new tenancies higher from the start - and that dynamic is now showing in the data.
You may wish to review your room rates before your next void and sense-check commercial value using the HMO valuation calculator before you set a rate you will be locked into for up to twelve months.
Rental inflation across England reached 6.5% year-on-year in June 2026 - the highest level in almost two years, according to Goodlord's rental index (published 2 July 2026). The average monthly cost of a new tenancy hit £1,309, up from £1,229 twelve months earlier.
What the data shows
The private rented sector (PRS) spent the first five months of 2026 in near stagnation. Year-on-year inflation sat at just 1.7% through April and May, as landlords, agents and tenants waited to see how the Renters' Rights Act (RRA) - which came into force in May 2026 - would affect the market.
June broke that pattern sharply. Month-on-month, rents rose 8.1% between May (£1,211 average) and June (£1,309), the largest single-month increase since last summer, according to Goodlord. Rents are now at their highest level since September 2025, when they stood at £1,389. Year-on-year and month-on-month increases were recorded in every region in England.
The regional spread is wide. Yorkshire and the Humber led annual growth at 16% since June 2025. The South West and North East both recorded year-on-year inflation above 10%. London, which had topped the charts in April and May, came in at 5.6% year-on-year in June - no longer leading the field.
What the RRA has to do with it
Goodlord's chief executive William Reeve points to one likely driver: the RRA's new rules on in-tenancy rent increases. Under Section 13 (the mechanism under the RRA through which landlords may raise rents during a tenancy), landlords are now limited to one increase per year. That creates a clear incentive to begin new tenancies at higher rates rather than relying on incremental uplifts during the tenancy.
For HMO (house in multiple occupation) landlords, this dynamic is particularly significant. Room-by-room tenancies mean you are regularly resetting rates on individual rooms. If market rents in your area are climbing - and in Yorkshire, the North East and the South West they clearly are - that gap between current room rates and achievable market rates can open fast. It can happen within a single tenancy cycle.
Reeve's own assessment is cautious: "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." That is worth tracking closely.
What HMO landlords should consider now
Start with the data for your specific area. The LHA rates map gives you Housing Benefit benchmarks by postcode - useful context if any of your rooms are let to tenants on Local Housing Allowance (LHA, the housing element of Universal Credit for private renters), and a baseline for understanding where open-market rates sit relative to benefit caps in your area.
If your rooms are coming up for re-let this summer, you may wish to consider whether your asking rate reflects current market conditions. The HMO valuation calculator can help you sense-check commercial value against rising market comparables - particularly relevant before you set a rate that Section 13 will lock in for up to twelve months.
It is also worth stress-testing your position if you are refinancing or assessing acquisition targets. The BTL stress test calculator shows how rising rents interact with current lender stress-test rates. Higher rents can improve debt service coverage - but only when your licence conditions, HMO management obligations and lender requirements are all aligned.
The June data is a signal, not a verdict. But for HMO landlords with rooms coming available this summer, it is a good moment to check your rates are where they should be.
Key takeaways
- Rental inflation hit 6.5% year-on-year in June 2026 - the highest in nearly two years, according to Goodlord's rental index - Average rents in England reached £1,309 per month, up £80 from £1,229 twelve months earlier - Yorkshire and the Humber recorded the largest annual increase at 16%; the South West and North East both exceeded 10% - Month-on-month, rents jumped 8.1% between May and June 2026 - the sharpest single-month rise since summer 2025 - The RRA's Section 13 restriction (one rent increase per year during a tenancy) is suspected to be driving landlords to set higher rents at tenancy start
Rental inflation across England reached 6.5% year-on-year in June 2026 - the highest level in almost two years, according to Goodlord's rental index (published 2 July 2026). The average monthly cost of a new tenancy hit £1,309, up from £1,229 twelve months earlier.
What the data shows
The private rented sector (PRS) spent the first five months of 2026 in near stagnation. Year-on-year inflation sat at just 1.7% through April and May, as landlords, agents and tenants waited to see how the Renters' Rights Act (RRA) - which came into force in May 2026 - would affect the market.
June broke that pattern sharply. Month-on-month, rents rose 8.1% between May (£1,211 average) and June (£1,309), the largest single-month increase since last summer, according to Goodlord. Rents are now at their highest level since September 2025, when they stood at £1,389. Year-on-year and month-on-month increases were recorded in every region in England.
The regional spread is wide. Yorkshire and the Humber led annual growth at 16% since June 2025. The South West and North East both recorded year-on-year inflation above 10%. London, which had topped the charts in April and May, came in at 5.6% year-on-year in June - no longer leading the field.
What the RRA has to do with it
Goodlord's chief executive William Reeve points to one likely driver: the RRA's new rules on in-tenancy rent increases. Under Section 13 (the mechanism under the RRA through which landlords may raise rents during a tenancy), landlords are now limited to one increase per year. That creates a clear incentive to begin new tenancies at higher rates rather than relying on incremental uplifts during the tenancy.
For HMO (house in multiple occupation) landlords, this dynamic is particularly significant. Room-by-room tenancies mean you are regularly resetting rates on individual rooms. If market rents in your area are climbing - and in Yorkshire, the North East and the South West they clearly are - that gap between current room rates and achievable market rates can open fast. It can happen within a single tenancy cycle.
Reeve's own assessment is cautious: "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." That is worth tracking closely.
What HMO landlords should consider now
Start with the data for your specific area. The LHA rates map gives you Housing Benefit benchmarks by postcode - useful context if any of your rooms are let to tenants on Local Housing Allowance (LHA, the housing element of Universal Credit for private renters), and a baseline for understanding where open-market rates sit relative to benefit caps in your area.
If your rooms are coming up for re-let this summer, you may wish to consider whether your asking rate reflects current market conditions. The HMO valuation calculator can help you sense-check commercial value against rising market comparables - particularly relevant before you set a rate that Section 13 will lock in for up to twelve months.
It is also worth stress-testing your position if you are refinancing or assessing acquisition targets. The BTL stress test calculator shows how rising rents interact with current lender stress-test rates. Higher rents can improve debt service coverage - but only when your licence conditions, HMO management obligations and lender requirements are all aligned.
The June data is a signal, not a verdict. But for HMO landlords with rooms coming available this summer, it is a good moment to check your rates are where they should be.
Key takeaways
- Rental inflation hit 6.5% year-on-year in June 2026 - the highest in nearly two years, according to Goodlord's rental index - Average rents in England reached £1,309 per month, up £80 from £1,229 twelve months earlier - Yorkshire and the Humber recorded the largest annual increase at 16%; the South West and North East both exceeded 10% - Month-on-month, rents jumped 8.1% between May and June 2026 - the sharpest single-month rise since summer 2025 - The RRA's Section 13 restriction (one rent increase per year during a tenancy) is suspected to be driving landlords to set higher rents at tenancy start
Frequently asked questions
Frequently asked questions
Why did rents spike so sharply in June 2026?
Does the RRA's Section 13 rule apply to HMO room lets?
Which regions saw the biggest rent increases in June 2026?
How can I check what rents look like in my area?
