Average rents across the UK increased by 2.2% in October when compared with the corresponding month last year, according to the latest data and analysis from Homelet.

The average rent across the UK now stands at £974 a month, the latest figures show, up from £953 a month in October 2019.

Rental values between October 2019 and October 2020 increased in 10 of the 12 regions monitored by the research, led by gains of 6.2% in the South West.

But average rents in London are down year-on-year, showing a 3.7% fall between October 2019 and October 2020, the fifth decrease in annual variance in subsequent months.

Despite the latest dip in the capital, the average rental value in London, which now stands at £1,603 a month, is 95% higher than the rest of the UK.

Martin Totty, chief executive at HomeLet, said: “There’s something strange – though maybe not that surprising – happening in the rental sector.

“In the key Greater London area, it’s maybe more about demand falling faster than supply leading to depressed rents, whilst in the regions, perhaps the reverse is more typical, with a tightening of stock ‘pinching’ demand and moving average rates gradually upwards. And, against all of this we have the backdrop of a more buoyant sales sector, albeit one with a still uncertain outlook beyond next March.

“For landlords prepared to tough it out, it looks like in most parts of the country, demand is still there, whilst in the capital, equilibrium may seem a little further away.

“At least the government recognise the value of the property sector and the multiplier effect it has on the economy. This time around, that argument now seems unequivocal, with letting agents able to continue ‘business as usual’ while adhering to all COVID safety guidelines.

“Landlords and tenants need each other and for the private rented sector to fulfil the important role it has in the UK housing market, it really needs to be allowed to get on with creating its own market – and find its equilibrium.”