Average rents across the UK increased by 2.1% in September when compared with the corresponding month last year, the latest figures and analysis from Homelet shows.

The average rent across the UK now stands at £987 per calendar month (pcm), up from £985 a month earlier, according to the data.

There has been a sharp rise in demand for rental properties since the letting market reopened in mid-May, and this is reflected by a 4% increase in average UK rents since June.

Looking on an annual basis, 10 of the 12 regions monitored by HomeLet showed an increase in rental values between September 2019 and September 2020, with the South West seeing an increase of 6.6%.

Martin Totty, chief executive at HomeLet, said: “Whilst it’s undoubtedly the case many landlords are being supportive of their tenants and agreeing temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.

“This is likely because tenant demand remains strong whilst supply may be a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon. It also doesn`t help tenants much if, for them, the prospect of securing first time mortgage finance remains as elusive as ever.”

But in London, rents were down by 2.8% in September versus the same month last year – the average rent in the capital now stands at £1,646pcm.

When London is excluded, the average rent in the UK is now £828 a month, which is up by 3.9% on last year.

Totty added: “Those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of: taxation change; new regulatory requirements; and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”