Rents have hit an 11-year high with 17 per cent more tenancies being granted this year than last, a report has shown.
Sequence, a chain of estate agents with 290 branches nationwide has published their most recent report, which shows rents rose 4 per cent in August and 11 per cent annually to £779 a month.
The report shows London rents have hit £1,465, a two per cent growth on last month and eight per cent annually.
There are also signs of increasing demand with new tenant registrations up 2 per cent on July and 11 per cent annually. In London the number of tenants grew by 5 per cent in the month.
New agreed tenancies were up 8 per cent on last month and 17 per cent annually, but the supply of new properties available to rent is flat on month, a stark contrast to levels of demand, the report says.
Stephen Nation, head of lettings at Sequence Group which includes Barnard Marcus, William H Brown, Fox & Sons and other leading brands, said: ‘As we predicted, August has been another record breaking month.
‘The supply of new properties to the market has seen no change on the month and if this continues to be outstripped by demand then we will see further significant rises in rents.’