Average rental prices across the UK increased by the highest rate recorded in three years, Hometrack’s rental market report shows.

The report outlines that average rents across the UK jumped by 2.6 per cent in Q4 2019 to £886 per month.

Turning to supply, the number of available rental homes fell by 4 per cent, while demand increased by 8 per cent over 2019.

Regionally, Nottingham noted the highest rental growth over 2019, rising by 5.8 per cent. This was followed by Bristol, which saw a 5.5 per cent, and York which recorded rental prices increasing by 5 per cent.

In contrast, Aberdeen saw average rents fall by 2.8 per cent over 2019. Middlesbrough and Coventry both also noted a decline in average rents, dropping by 1.1 per cent and 0.1 per cent, respectively.

Furthermore, average rental growth across the UK continues to run below the annual growth in average earnings, which is 3.8 per cent, according to ONS.

Zoopla insights and research director Richard Donnell says: “The scope for landlords to increase rents is greater when earnings are rising faster than rents and this has been the case for the last three years. The positive news for renters is that the growth in rents is running below the growth in average earnings.

“With further policy changes expected from the government, to provide more security of tenure for renters, we expect the supply of rented homes to remain constrained, which will support rental growth over 2020. With robust earnings growth, the impact on rental affordability will be muted.”