Average rents across the UK have risen by 5.9% over the year to reach a record high of £1,007 per month, according to the latest index from Homelet.

Every region of the UK recorded rent rises, while in London it was the first increase for more than a year with prices up by 1.5% to £1,607 a month.

However, average rents in the capital were still slightly lower than June 2019’s figure of £1,611. 

Excluding London, average UK rents are 8% higher than last year, up to £861 a month, which is 10% higher than pre-Covid levels in June 2019.

The South West saw the highest annual growth of 10.5% to £948 a month, which was 12.6% higher than before the pandemic in June 2019.

Scotland recorded the strongest month-on-month growth, with rents climbing 4.4% to £738 from May to June. 

In the North East fell by 2.3% month on month to £547 in June.

Homelet and Let Alliance chief executive Andy Halstead says: “Throughout the Coronavirus pandemic, the government rightly took measures to protect tenants but didn’t go far enough to balance the protection for landlords. 

“It’s a continuation of the theme that we’ve seen for many years, with landlords being penalised by higher taxes and increased complexity in obtaining possession of their properties. 

“In simple terms, increased costs for landlords mean increased costs for tenants.

“Some landlords have exited the market whilst the stamp duty holiday has stimulated the sales market, impacting the stock level. 

“These are all factors driving an increase in rental values for new tenancies, which are way above the rate of inflation. 

“The private rented sector plays a critical role in the UK’s housing market. As restrictions begin to ease, the flexibility provided by rentals will be crucial to mobility across the UK and as a means to access affordable housing that fits the varying needs of a diverse range of tenants.  

“The sector works best when there’s a mutual balance between tenants, landlords and letting agents. 

The government can’t treat the rental market as an afterthought. 

“Policies that solely focus on home ownership will only deepen the issues in the UK’s housing market.   

“Some people might be shocked to see the average UK rental price tip over the £1000 mark, yet supply and demand dynamics will only continue to drive rental prices upwards for the rest of the year, and we’ll see more records broken in 2021.”