The average rent across England and Wales is 3.1% higher than February last year, the greatest year-on-year increase seen in nearly two years, according to this morning’s Buy-to-Let Index from Your Move and Reeds Rains.

In real terms, average residential rents in England and Wales now stand at £766 compared to £763 in January 2015 and £743 in February last year.

Adrian Gill, director of Reeds Rains and Your Move, said: “The rental sector is carrying the weight of the housing crisis. More homes are needed to house an ever-growing population. The supply simply isn’t there.

“The result is that landlords are catering to those who can’t afford to buy as well as those who choose renting for the flexibility it offers them.

“House prices rising out of reach for people at the lower end of the market makes increasing demand in the private rented sector inevitable. A serious and substantial commitment to new-builds is the only way to bring supply in line with demand.”

Rents rose in most regions, but there were monthly decreases in Yorkshire, the north-west, west midlands and south-east – each area down by 0.4%.

LSL estimates that as of February, 7.6% of all rent was in arrears – an increase on both a monthly and annual basis. In January, 6.8% of all rent was in arrears, while this figure was 6.9% in February.