Average rents in the private rental sector increased by 0.5% in April, pushing up the average UK rent to £709 a month, according to letting agency group LSL Property Services.
It was the first recorded rise for three months and left rents 2.4% higher compared to the same month last year.
Unsurprisingly, the highest rents are in London, where they have increased by 4.5% in the past year to an average of £1,032 per month, more than 46% above the national average.
The biggest decline in rents was in Wales where they fell by 1.3% and the West Midlands, where they dropped by 0.6% compared to March.
David Newnes, director of LSL Property Services, said: “After absorbing the impact of the stamp duty deadline on tenant demand, the rental market began to heat up in April.”
He added: “As fewer tenants rushed to leave the sector, competition for rental accommodation intensified, and rents rose correspondingly.”
Rent arrears also rising
The report also showed that more tenants are struggling to meet higher rents, with the level of arrears among tenants increasing in April, with almost 10% of all rent unpaid at the end of the month, up from 8.7% in March.
The total amount of unpaid rent in April amounted to £306m, up 14% from £267m the previous month.
David Newnes added: “April’s rise should serve as a warning that landlords cannot afford to take their eye off the ball. Despite several monthly dips in 2012, rents are still rising at a faster rate than wages annually.
“With a faltering economy, and further public sector job losses to come, an increasing number of rented households will see their finances stretched.”
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