Average rents across the UK have increased by 6.6% in the year to July to reach a record high of £1,029 per month, the latest index from HomeLet reveals.

Rents were also 2.2% higher than June’s figure of £1,007.

In London, rents were up for the second month in a row, with an increase of 2.4% to £1,645 from June to July.

However, the capital saw the weakest annual growth of any region or country, at 2.1%.

The South West saw the strongest annual growth, with rents up by 12.9% year on year and by 4.3% month on month to £989 in July.

Wales also recorded a big annual jump in rents, up by 11.8% year on year to £713.

The East Midlands was close behind with annual growth of 10.8% to £727.

At the other end of the scale, the North East recorded the next weakest annual growth after London, with rents up by 3.4% year on year to £553. 

HomeLet says its figures are based on actual rents achieved rather than just those that are advertised.

HomeLet & Let Alliance chief executive Andy Halstead says: “The data show the exceptional growth in rental values, particularly in areas that are within commutable distance to London. 

“Throughout the pandemic, the rate of growth in some regions has more than doubled against previous years. 

“We see positive signs in the capital, rents are now just 1.2% down on pre-pandemic levels from July 2019, with boroughs in central and inner London showing growth in achieved rental values. 

“With restrictions easing, optimism is returning. 

“The demand will steadily grow for the rest of the year.   

“The private rented sector is exceptionally resilient, and demand for property remains high as we see the fast-growing build-to-rent industry meeting some of these needs across the country. 

“That’s a theme that will continue for the foreseeable future, as tenants look to benefit from the lifestyle the industry can provide with features like on-site amenities and concierge services.”