Average rents across the UK have increased by 4% over the past year to £997 a month, but London has seen a decline, according to the latest index from HomeLet.

Rents in the capital dropped by 0.9% to £1,583, in the 12th consecutive month of year-on-year declines.

Every region apart from London saw rents rise on an annual basis and when the capital is taken out of the equation, the average UK rent is up 6.4% to £854.

The East of England saw the highest annual growth with rents up by 8.5% to £1,00.

Looking at the month-on-month trends, Scotland saw the strongest growth with rents up by 2.6% to £707 in May. 

In the East Midlands, however, rents fell by 0.7% to £704 from April to May .

HomeLet and Let Alliance chief executive Andy Halstead says: “We’ve seen from sharp house price spikes across the country that the Coronavirus pandemic changed what Britons are looking for in a property. 

“Many are said to be looking for properties offering more living space; for those working from home as an example, that’s also the case in the private rented sector.  

“Rental properties continue to play a crucial role in meeting the demands of people up and down the country, and the flexibility and responsiveness shown by the private rental sector will be vital in the coming months as the country opens up again. 

“As rents increase, we’ve also seen an increase of over 10% in suspicious and fraudulent applications for let property; with backlogs and delays in processing evictions, the demand for high-quality tenant reference and insurances has never been higher.   

“The overwhelming success of the vaccination drive brings hope that returning to some form of normality could be on the horizon. 

“However, we would still caution that millions could be made unemployed at the end of the furlough scheme – posing considerable problems in tandem with an unbalanced rental market. 

“Whilst the government looks to stimulate homeownership, the importance of the private rented sector can’t be understated and should not be overlooked.”