Private sector rents in England and Wales have grown 4.6 per cent year-on-year – the fastest rate of increase since November 2010 and taking the average rent to a record high of £774 according to LSL.
In London that average figure is £1,204 although the single highest increase over the past year has been seen in the east of England where rents soared by 12.5 per cent in 12 months.
LSL spokesman Adrian Gill says the upward momentum is being fuelled by a shortage of homes and renewed wage growth.
“Economic progress has brought about a slow but steady stream of household earnings and employment - the most basic requirements for rent rises. Placed in the context of the UK’s pressure-cooker housing shortage, these modest improvements have driven rents up at record speed” he says.
“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” says Gill.
LSL’s survey also shows that the gross rental yield on a typical rental property in England and Wales stands at 5.1 per cent - much the same as a year ago.
However, total returns have dipped on cooler property price rises.
Taking into account changes in property prices and adjusting for void periods between tenants - but before costs such as mortgage repayments or maintenance - total annual returns on an average rental property now stand at 8.9 per cent over the year to April.
In absolute terms this means the average landlord in England and Wales has seen a return, before deductions such as mortgage payments and maintenance, of £15,503 over the last 12 months.
Within this figure rental income makes up £8,247 while the average capital gain amounts to £7,256.