Rents across England and Wales have fallen for the first time since March.

According to the latest Buy-to-Let Index from Your Move and Reeds Rains, rents fell by 0.1% between July and August and now stand at an average of £803.

Rents are now 5.5% higher than they were in August last year – a slowdown from July when annual rises stood at an all-time record of 6.8%.

While rent increase trends in London and the South East were showing signs of slowing, those in the Midlands and the East of England hit all-time highs.

However, the Index also shows that despite slower rent increases, the proportion of rent in arrears has risen to 9.9%.

Adrian Gill, director of Reeds Rains and Your Move, said: “August has witnessed a break in a series of blistering rent rises.

“Yet this mild correction comes on the back of a whole year of acceleration. Rents are rising rapidly on an annual basis, underpinned by an improving economic picture for many potential tenants – and the peak lettings season is only just about to start this autumn.

“There is also no major change to the fundamentals of supply and demand. This means that in the longer term, faster rent rises may become a semi-permanent feature of the British property market.

“Alongside purchase prices, rents will continue to rise rapidly until something happens to address a drastic shortage of homes in the UK.”