"Another month of cooling rental inflation reinforces the picture that the market is returning to some form of equilibrium after a series of record-breaking years"
- William Reeve - Goodlord
Rents across England remained broadly stable in February as demand continued to soften and the market showed further signs of stabilisation, according to the Goodlord Rental Index.
Year-on-year rental costs rose by 2% in February 2026, a slower pace than both January’s annual growth rate of 2.4% and the 4% recorded in February last year. Month-on-month rents changed only marginally, while void periods shortened after an unusually sharp rise in January.
Based on thousands of verified tenancy transactions each month, the index reflects agreed rental prices rather than advertised asking rents. This approach removes marketing inflation and focuses on confirmed tenant contracts.
Annual rent growth slows
The average monthly rent in England reached £1,203 in February 2026, compared with £1,180 in February 2025. This marks a 2% annual increase and confirms a continued deceleration in rental inflation.
A year earlier, rents were rising at 4% year on year. January’s figure of 2.4% also exceeded February’s latest reading.
Rental growth now sits below wider economic measures. Consumer Price Inflation stood at 3.2% in January, while wage growth reached 4.2%, meaning rents are increasing more slowly than both living costs and earnings.
At a regional level, some areas recorded annual falls. Rents in the East of England were 4.5% lower than in February 2025, while the South West posted a 1% decline.
In contrast, the North of England continued to lead rental growth. The North West saw year-on-year rents rise by more than 9%, increasing from £1,002 to £1,096. The North East recorded a 5% annual increase.
Monthly prices remain sticky
Across England, month-on-month movement in rents remained limited. January’s average rent of £1,201 edged up by just 0.15% to £1,203 in February, equivalent to a difference of £24 per year.
The strongest monthly rise again appeared in the North West, where rents increased by nearly 4%, from £1,057 to £1,096.
The steepest fall occurred in the South West, where average rents dropped by more than 3.5%, from £1,253 in January to £1,208 in February.
These figures reinforce a picture of softening price pressure. However, the index typically records only modest month-on-month changes between January and February, reflecting seasonal patterns in the lettings market.
Void periods shorten after January spike
Despite subdued rental growth, void periods fell back in February after a sharp increase at the start of the year. Across England, the average void period dropped from 26 days in January to 22 days in February, a reduction of 15%.
Voids shortened in every region tracked by the index. The largest shift was in the South West, where average voids fell from 28 days to 18 days. The smallest change was recorded in Yorkshire and the Humber, where voids moved from 24 days to 22 days.
Even so, void periods remain slightly longer than a year ago. In February 2025, properties stood empty for an average of 20 days, compared with 22 days this year.
Taken together, the data suggests a market that is easing after several years of rapid growth, with less intense competition for available homes and more predictable turnover between tenancies.
“Another month of cooling rental inflation reinforces the picture that the market is returning to some form of equilibrium after a series of record-breaking years,” said William Reeve, CEO of Goodlord. “This is good news for tenants, particularly if rental price increases continue to sit below wage growth figures.
“It’s also a positive sign that there isn’t a supply shortage, despite the wider regulatory turbulence that landlords are navigating. If these trends continue into spring, it could provide a relatively benign backdrop for the Renters Rights Act implementation on 1 May.”
With annual rent growth slowing, month-on-month prices largely flat and void periods moving closer to seasonal norms, February’s figures point to a rental market that is becoming more balanced after prolonged volatility.
