Northern Rents Lead the Country for Growth

April 7, 2026

The latest rental data shows a clear regional divide. While the national picture points to cooler overall demand, the North of England is still delivering the strongest rental growth in the country. According to Goodlord’s March 2026 Rental Index, Yorkshire and The Humber recorded year-on-year rental growth of 6.6%, the North West posted 6.3%, and the North East reached 5.9%. No other English region saw annual rental growth above 2.8%, while the East of England and the South West each recorded lower rents than they did in March 2025.

That matters because it shows that the wider market is not moving in one uniform direction. Across England, Goodlord described March as a market in a “holding pattern”, with limited month-on-month rental movement and softer overall conditions than many landlords became used to in previous years. Even so, the North continues to outperform.

The North is not just growing, it is leading

There is an important difference between rents rising and rents leading the country. The latest Goodlord figures do not simply show that northern rents are increasing. They show that the three strongest performing English regions for annual rental growth are all in the North. Yorkshire and The Humber sits in first place, the North West follows closely behind, and the North East completes the top three.

That is a powerful signal for investors. When one part of the country consistently produces stronger rental inflation than the rest, it suggests more durable demand, stronger pricing power, and a more supportive environment for income-led property strategies. This does not mean every property in the North is automatically a good investment. It does mean the region deserves serious attention from investors who care about long term rental performance.

A cooler national market can still favour northern landlords

One of the most useful things about the latest Goodlord data is that it helps separate national sentiment from regional reality. It would be easy to assume that if the wider market is cooling then every region is weakening in the same way. That is not what the data shows.

Instead, March 2026 points to a more selective market. National conditions may have steadied, but northern rents are still showing much more upward momentum than elsewhere. Earlier 2026 Goodlord reporting also showed a similar pattern, with the North West and North East already standing out for stronger annual growth in February.

For investors, this is often where better opportunities appear. Broad national headlines can hide the fact that some regional markets are still strengthening while others flatten or slip back.

Why this creates such a strong backdrop for northern HMOs

This is also creating a fantastic storm for northern HMOs. It is not just that rents are increasing in the North. It is that rising rents in the wider private rented sector can make HMOs look even more attractive to tenants who need affordability, flexibility, and certainty over their monthly outgoings.

As private single let properties continue to increase their rents, many tenants start to compare the full monthly cost of living rather than just the headline rent alone. A single let often comes with council tax, gas, electricity, water, broadband, and other household costs on top. An all bills included HMO room can therefore become a far more affordable and manageable option, especially for working tenants who want a simpler monthly budget.

That affordability gap matters. When single let rents rise sharply, well run HMOs often become a better value alternative. In many northern towns and cities, that strengthens the appeal of quality shared housing and helps support ongoing tenant demand.

Rising single let rents can make good HMOs even more competitive

This point is especially important because HMO demand is not driven by room price alone. It is driven by value. Tenants want a home that is affordable, practical, and easy to budget for. When wider rental inflation pushes up the cost of self-contained private lets, all bills included accommodation can start to look far more sensible.

That does not mean every HMO benefits equally. Poorly managed shared houses, tired stock, and cramped rooms can still struggle. However, professionally run HMOs in strong northern rental markets are well placed to benefit when tenants are looking for a cheaper alternative to increasingly expensive single let homes.

In that sense, northern HMOs can benefit from both sides of the market. Regional rents are rising, which supports stronger income conditions. At the same time, the rising cost of private lets can push more tenants towards shared housing that offers clearer monthly affordability.

Why investors are taking notice from all over the globe

This is one of the reasons we are seeing an increase in HMO sales from investors located all over the globe. They are looking at the same broad trends. The North is leading the country for rental growth. Affordability pressures are making all bills included HMOs look stronger to tenants. Well managed northern HMOs are therefore becoming more attractive as income-producing assets.

For overseas and out-of-area investors in particular, that combination is compelling. They want locations where demand remains deep, rents are moving in the right direction, and the product still serves a clear need in the market. Northern HMOs can meet all three of those tests when they are developed and managed properly.

That is why the latest rental figures matter beyond simple headline percentages. They support a bigger investment case. The North is not only producing stronger rental growth than the rest of England, it is also strengthening the relative value proposition of HMOs as private single let costs continue to rise.

Yorkshire and The Humber deserves special attention

Yorkshire and The Humber topping the table at 6.6% annual growth is especially notable. This is not a marginal outperformance. It is a clear lead. The region also recorded the strongest year-on-year increase in England in March 2026, reinforcing the case for investors who have already been watching northern markets closely.

For those focused on HMOs, that matters because Yorkshire and The Humber combines strong working populations, major employment centres, and a long established need for practical, affordable rented accommodation. When a region like that also leads the country for rental growth, it becomes much easier to see why investors are paying close attention.

Northern growth still rewards quality

Even with all of this positive momentum, quality still matters. Stronger regional rental growth does not rescue poor buying decisions. It does not fix bad layouts, weak management, or properties that do not meet what tenants actually want.

The landlords and investors most likely to benefit from this market are those offering good quality accommodation in sensible locations, with strong management behind it. In HMOs, that means professional presentation, good room sizes, strong compliance, appealing communal areas, and a product that feels like a real home rather than a squeezed yield exercise.

That is why northern rental growth should be seen as an opportunity, not a shortcut. The backdrop is strong, but execution still matters.

The bigger message for investors

The latest Goodlord data tells an important story. The national market may be cooler overall, but the North is still leading the country for rental growth. Yorkshire and The Humber, the North West, and the North East all outperformed every other English region in March 2026.

For HMO investors, that trend is especially significant. Northern rents are rising. Private single let homes are becoming more expensive. All bills included HMOs are therefore becoming a more attractive and affordable option for many tenants. That combination creates a very powerful environment for good quality northern HMO stock.

It also helps explain why more investors, including those based overseas, are looking closely at northern HMOs. They can see a market where rental growth, affordability pressure, and tenant demand are all working together in the same direction.