Buy To Let Updated:
Rents rose across every region in England and Wales in September for the first time on record.
In September, the average rent in England and Wales rose by 0.7% to £718 per month, surpassing the previous record high of £713 in August.
With annual rental inflation at 4.3%, the average rent is £29 a month higher than September 2010, figures from LSL Property Services show.
With rents rising in every area, six regions in England and Wales - London, the South East, Yorkshire and the Humber, the East of England, Wales and the East Midlands - saw average rental prices rise to record highs in September.
Rents increased the fastest in the South East and the East Midlands, where they rose by 1.8% and 1.1% respectively compared to August, while the smallest increases were in the West Midlands and the North East, where rents rose by 0.2% and 0.3% respectively.
However, over the course of the last year, London's rents have risen at a faster rate than any other region, increasing by 5.8%.
The next biggest annual increases were in the South West and the West Midlands, where rents rose 5.4% and 5.1% respectively.
The size of the private rental market has increased dramatically in recent years, as people struggling to raise the money to buy a home have turned their focus to renting.
"It's not just a regional phenomenon, localised to London and the South East – rents are rising across the board," said David Brown, commercial director of LSL Property Services.
"In areas of the highest demand, such as the capital, competition is driving up rents at a faster rate elsewhere – but no region has been immune to the growing demand for rental homes from frustrated buyers.
"In many cases, buying a home is now cheaper on a monthly basis – provided renters can get past the stumbling block of the substantial deposit requirements.
"For the majority, saving a £25,000 deposit is a Herculean task as inflation and rents climb – and most would-be buyers are biting the bullet and prolonging their stay in increasingly costly rental accommodation."
As well as increasing rents, landlords are also benefiting from low levels of tenant arrears.
Just 8.6% of all UK rent was unpaid or late by the end of September – down from the 10.7% of rent unpaid or late in August.
Unpaid rent totalled £243 million across the UK in September, down from the £300 million unpaid in the previous month.
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