For the first time in over two years, rental prices of homes outgrew house prices. Across England and Wales, rents grew to a new record high of £789 in June. This is 1.4% higher than the level of £778 recorded in May, and it is up 5.6% since June of last year. The increased level translates into it being the first time since July 2013 that rents increased at a quicker pace than house prices for comparable properties.

Rents could rise even more as landlords seek to recoup the loss in tax relief should George Osborne as expected in the Summer Budget take that away from buy to let owners. They will seek to keep their profit levels the same and will most likely raise their rental fees. Tenants will have little options to them as many still find it very difficult to save for a deposit to purchase a home.

Director of estate agents for Reeds Rains and Your Move, Adrian Gill, remarked, “The pedal is pressed to the metal in the rental market. Not only have rents hit a new all-time record high – but we have never seen them rise so quickly.

“Growing wage packets and a strengthening economy mean that a greater number of tenants are able to afford higher rents. With such an overall shortage of housing in the UK, rental costs are primarily driven by the amount tenants are capable of paying.”

Mr. Gill added, “Rents have also decoupled from inflation. While record low inflation fueled by falling oil prices might bring clothes or food within the range of tenants' purchasing power, it doesn't have much of an effect on the property market in the short term.”