Shock leap in rent levels as Renters Rights Act disrupts market
Summary
Goodlord’s monthly index reports a sharp rise in rental inflation in England in June, with annual rent growth increasing to 6.5% and month-on-month rents up 8.1%. The article suggests the change may be an early market response to the Renters Rights Act, though it is too soon to determine whether this is a temporary spike or a broader trend.
Why it matters
Rental market shifts can affect valuation assumptions, affordability assessments and local market evidence used by surveyors. The apparent impact of rental reform may also influence investor sentiment and landlord behaviour, with knock-on effects for the wider housing market.
Key points
- Annual rental inflation rose to 6.5% in June, up from 1.7% in April and May.
- Average new tenancy rent in England increased to £1,309 in June from £1,211 in May.
- Rents increased year-on-year and month-on-month in every region of England.
- Goodlord links the change to possible market disruption following the Renters Rights Act.
- The article says it is unclear whether June’s figures are a one-off or the start of a wider trend.
Organisations:
Goodlord
Regulations:
Renters Rights Act, Consumer Price Inflation
Locations:
England, Yorkshire and the Humber, South West, North East, East Midlands, London, West Midlands
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