Rental prices increased by 1.5 per cent in April compared to the same month a year earlier, according to the latest HomeLet Rental Index.

The average rent agreed on a new tenancy signed in April was £918 per calendar month (pcm).

When London is excluded, the average UK rental value was £761pcm in April, which is up 0.9 per cent on last year.

On an annualised basis, rents rose in nine of the 12 regions monitored, led by gains in London where rents are up 4.5 per cent year-on-year to reach an average of £1,588pcm.

Scotland saw rents rise 3.3 per cent, while the West Midlands (2.7 per cent), East Midlands (2.5 per cent) and Northern Ireland (2.3 per cent) also saw strong gains.

Elsewhere, the North West (2.2 per cent), Yorkshire & Humberside (1 per cent), South West (0.7 per cent) and East of England (0.3 per cent) also saw growth in rents.

Wales saw the biggest drop in rents at -2.1 per cent, while rents also fell by -0.4 per cent in the North East and South East of England.

Although landlords should be aware of tenants’ ability to pay higher prices, experts believe that rental prices may yet offer room for growth.