Rents rose 2% in February, according to the Goodlord Rental Index.
The average cost of a rental property in England in February 2026 was £1,203.
This is a 2% increase on prices recorded at the same time last year (February 2025), when rental prices averaged £1,180 per property.
This is a significantly lower level of rental inflation compared to last February’s figures. At the same time, rents increased by 4% year-on-year in 2025.
This is also lower than the annual inflation rate recorded last month. In January, rents increased by 2.4% year on year.
The February figures mean that rental inflation is still below the latest consumer price inflation figure 3% for January, and below wage growth, of 4.2%.
At a regional level, rental costs have even fallen year-on-year in some regions.
Renters in the East of England are currently enjoying prices that are 4.5% lower than in February 2025. And those in the South West have also seen a 1% annual reduction in average rental prices.
Elsewhere, the North of England continues to lead the way in rental growth, similar to the trends tracked last month.
In the North West, year-on-year prices rose by more than 9% in February (from £1,002 per home last year to £1,096 this year). And the North East recorded a 5% increase.
Across England, month-on-month rental prices remained very stable. In January the average rental cost was £1,201. In February this rose by just 0.15% to £1,203 – a difference of just £24 per year.
The largest increase again occurred in the northwest. Prices here rose by almost 4% – from £1,057 to £1,096.
The biggest fall was recorded in the South West, where prices fell by more than 3.5% – from £1,253 in January to £1,208 in February.
While month-on-month rental averages further reinforce the view that the market is weakening, the Index typically records minimal month-on-month rental price changes between January and February each year.
Despite declining price inflation, voids declined in February, following a particularly sharp increase in January. During the month, the number of cavities decreased from 26 days to 22 days. This is a reduction of 15%.
In all monitored regions, the cavities have become shorter. The largest shift was seen in the southwest, where the voids shortened from 28 to 18 days. The smallest reduction was recorded in Yorkshire and the Humber, where cavities went from 24 days to 22 days.
Overall, vacancy periods are on average longer compared to the same period last year. In February 2025, the vacancy rate was 20 days, compared to 22 days currently.
Goodlord chief executive William Reeve said: “Another month of cooling rental inflation reinforces the view that the market is returning to some form of equilibrium after a series of record years.
“This is good news for tenants, especially if rent increases remain below wage growth rates. It is also a positive sign that there is no supply shortage, despite the wider regulatory turbulence facing landlords. If these trends continue into the spring, this could provide a relatively benign backdrop for the Tenants’ Rights Act implementation on May 1.”
The Goodlord Rental Index is based on thousands of verified rental transactions each month and reflects the prices actually paid.