New rents across the UK continued to rise during May, but the rate of increase slowed.

Average new rents, excluding London, are now £771 per month.

Referencing firm HomeLet reports that rents agreed on new tenancies across the UK over the three months to the end of May were up by 4.4%, compared to the same period in 2015.

That compares to an annual increase of 5.1% in April and 7.6% in May last year.

The May data from the HomeLet Rental Index will provide some encouragement for both landlords and tenants.

Landlords may have been expecting some impact from the increase in the supply of rental property in May, as those who rushed to complete buy-to-let property purchases before higher rates of stamp duty came into force on April 1, began offering their properties to tenants.

HomeLet’s data suggests landlords continue to enjoy healthy rental yields after costs, while tenants will be encouraged to see the pace of rent rises now beginning to moderate.

In Scotland, rents are currently rising faster than anywhere else in the UK, with new tenancies costing 10.6% more than in the same period a year ago.

However, in the east midlands rents have risen 8.3% over the year, and in London, where the average rent on a new tenancy is now £1,563, rents are up 6.2%.