The south west was the fastest growing rental market in England and Wales last month as rent rises stumbled but remain above the rate of inflation.

Your Move’s latest Rental Tracker shows that rents in south west England increased 3% annually to £679 in April.

The next fastest was the East Midlands region, where the average rental property was let for £654, up 2.9% annually.

Across all of England and Wales, average rents increased by the same rate as the month before at 3.2% to £861, which is just £1 more than the March figure.

In comparison, the latest inflation measure for April was 2.4%, suggesting rents are still outpacing the cost of living.

The only two regions to see rents decline in the 12 months to April were the north east and Wales.

Wales saw prices decline by 2.1% in the year to April at £590, while the north east saw prices drop 1.6% annually to £536, making it the cheapest place to rent in England and Wales.

London retained its position as the most expensive place to rent but prices were up just 0.1% annually to £1,275.

Martyn Alderton, national lettings director at Your Move, said: “There are two big stories this month. The first is the south west of England, where prices grew by 3% in the last year – faster than anywhere else.

“The east midlands was the other, with average rental prices hitting £654 which has resulted in average yields for landlords growing from 4% to 4.3% between March and April.

“This is good news for landlords who have been battling falling returns in recent times thanks to a combination of slower rent increases and Government tax changes.”