The latest Buy-to-Let index from Your Move and Reeds Rains has revealed that rents throughout England and Wales increased by 4.6% compared to April last year.
This is the fastest yearly rise since November 2010, further highlighting the ever-growing strength of the rental market.
In absolute terms rents have also reached an all-time record. As of April 2015, the average rent across England and Wales stood at £774 – the most expensive rental price ever seen.
Additionally, rents rose by 0.8% between March to April, the fastest month-on-month growth since September.
From a regional perspective, the East of England and London are surging ahead, with rents rising by 12.5% and 7.8% respectively. On the other hand, rents in Wales are 2.8% down on where they were in April last year, while rents in the North East fell back 0.8%.
The data also showed tenant finances are improving, with 7% of all rents now in arrears, down from 7.4% in March 2015 and 7.4% in April last year.
“Rents are going skywards and still accelerating,” Adrian Gill, director of estate agents Reeds Rains and Your Move, commented. “That momentum is fuelled by a fundamental shortage of housing and given oxygen by renewed wage growth.”
He added: “This should be a loud and clear signal to the authorities that home building is more than just manifesto-fodder. People have more money in their pockets, but we’re in danger of seeing that recovery squandered away on a housing shortage.”
“With the surprise of a relatively strong majority government, there has never been a better time to take the bull by the horns and fix this housing crisis at the root."