The introduction of the Renters’ Rights Act may be influencing landlord pricing, with the latest rental data suggesting some landlords are setting higher initial rents as they adjust to restrictions on future rent increases.

Average rents in England rose sharply in June, with annual rental inflation reaching its highest level since August 2024, according to the latest figures from Goodlord.

The Goodlord Rental Index shows the average monthly rent for a new tenancy increased to £1,309 in June, up 6.5% from £1,229 a year earlier. The figure also represents an 8.1% increase on May’s average rent of £1,211.

The annual increase marks a significant change from April and May, when year-on-year rental inflation stood at 1.7%. June’s rise also exceeded the latest measures of consumer price inflation and wage growth.

Goodlord said the figures, which are based on completed tenancy agreements rather than advertised rents, could indicate that the private rented sector is beginning to adjust following the introduction of the Renters’ Rights Act in May. However, it said it is too early to determine whether the increase represents a temporary adjustment or the start of a longer-term trend.

The June figures also marked the largest month-on-month increase in rents since July 2025, with average rents reaching their highest level since September last year.

Rental prices increased across every region of England on both an annual and monthly basis. Yorkshire and the Humber recorded the strongest annual growth at 16%, followed by the South West and North East, where rents rose by more than 10% year-on-year.

On a monthly basis, the South West recorded the largest increase, with rents rising 29.5% between May and June, followed by the North East (15.7%) and Yorkshire and the Humber (12.6%). The West Midlands recorded the smallest monthly increase at 0.5%.

William Reeve, CEO of Goodlord, said: “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.”