Northern England leads UK rental growth
The latest Office for National Statistics (ONS) figures put northern England at the front of the rental market. Rents increased by 6.3% in the North East and 5.7% in the North West in the year to July 2026, both above England's 3.8% increase.
For investors, some of the strongest rental growth is being recorded in the regions at the centre of the Find UK Property approach.
STRONGEST REGION
6.3% North East annual rent growth – the highest of any English region.Annual private rent growth, year to July 2026. Source: Office for National Statistics.
THE SHORT READ
Rental growth is strongest in northern England
Average UK private rent reached £1,393 in July 2026, up 3.7%. England averaged £1,451, up 3.8%. The North East led at 6.3%, with the North West at 5.7%. As more expensive properties in the south have seen a slowdown in both price and rent growth – the north is distinctly higher with more headroom on both fronts.
MOST AFFORDABLE OF THE LEADERS
£783 Average monthly rent in the North East, against £2,317 in London.
THE KEY TAKEAWAY
The North East and North West are recording rental growth well above the England average, while monthly rents remain more affordable than in the country's highest-cost markets.
The data supports an income-led view focused on rent levels, regional selection and sustainable long-term occupancy.
RENTAL MARKET
Rental growth is strengthening across the UK
Average UK monthly private rent reached £1,393 in July 2026, £50 higher than a year earlier. The annual increase was 3.7%, up from 3.3% in June and the highest rate recorded since December 2025.
In England, average monthly rent was £1,451, up £53 over 12 months. Annual growth rose to 3.8% from 3.4% in June.
The ONS measure covers both new and existing tenancies, giving a broad view of movement across the private rental stock rather than focusing only on newly advertised homes.
For investors, the national figures establish the direction. The regional breakdown shows where the strongest growth is concentrated.
REGIONAL PERFORMANCE
North East and North West are setting the pace
The North East recorded 6.3% annual rent growth, the highest rate of any English region. The figure was unchanged from June, keeping the region at the top of the table.
The North West followed at 5.7%. This placed both northern regions comfortably above England's 3.8% average. London recorded 3.0%, while the South East had the lowest regional increase at 2.9%.
The gap is clear. North East rental growth was 2.5 percentage points above the England average, while the North West was almost 2 points higher.
Source: Office for National Statistics, private rent statistics, year to July 2026.
percentage points separate North East rent growth from the England average. The North West is almost 2 points ahead.
RENT LEVELS
Strong growth is coming from lower monthly rents
Growth rates need context because the amount tenants pay each month varies considerably between regions.
Average monthly rent was £783 in the North East and £965 in the North West in July. The England average was £1,451, while London remained the highest-cost region at £2,317.
AFFORDABLE MARKETS
Northern England
Substantial annual increases are being recorded from lower monthly rents, keeping homes within reach of local tenants.
HIGHER-COST MARKETS
London & the South East
Growth is slower where rents already sit at the top of the market and affordability limits further increases.
This shows that the strongest northern growth is not coming from England's highest absolute rents. Instead, substantial annual increases are being recorded from lower monthly levels.
Lower rent does not automatically mean affordable for every household, and rental growth alone does not make a property a good investment. Local incomes, property quality, management, occupancy and the exact rent still matter.
INVESTOR OUTLOOK
Income-led investment starts with sustainable rents
The latest ONS release reinforces a simple point: the UK rental market is not uniform.
Investors need to compare regional rent growth, current monthly levels and the characteristics of the local tenant market rather than relying on one national headline.
Strong rental growth may support investment income over time, but it should be assessed alongside realistic rent setting and long-term occupancy. The objective is not simply to charge the highest rent. It is to own the right property at a sustainable rent in a market with established need.
That is why regional selection matters. The North East and North West currently have the two strongest official rental growth rates in England.
WHY THIS MATTERS FOR FIND UK PROPERTY INVESTORS
The latest rental figures align with the regions at the centre of the Find UK Property approach.
Find UK Property focuses on affordable houses in selected North East and North West locations. These are the two English regions with the highest annual rental growth in the latest ONS data.
All Find UK Property houses are freehold. Clients therefore own the house and land without a diminishing lease term, future lease-extension requirement or leasehold ground rent.
The figures provide official evidence of strong rental growth across the regions central to Find UK Property's approach.
EXPLORE THE OPPORTUNITY
Invest in northern rental markets with strong official growth.
Find UK Property gives investors access to affordable freehold houses in selected North East and North West locations, combining straightforward ownership with exposure to established rental markets.
Explore Find UK Property's available investment properties and see how northern rental housing could fit into your portfolio.
EXPLORE OUR PROPERTY TYPES ↗Sources
- Office for National Statistics, August 2026 private rent statistical bulletin
- Office for National Statistics, private rent monthly statistics, 19 August 2026 edition
- Office for National Statistics, private rent annual inflation by English region, July 2026
Figures are the latest available at publication and are provisional where stated by the ONS. This article provides general information and is not legal, financial or investment advice.
