A survey by LSL Property Services has revealed rents in England and Wales continue to surge, with the average rent hitting a further record high last month.

August represented the seventh consecutive month that the average rental cost rose.

Lenders’ deposit requirements, together with unaffordable house prices has meant the rented sector has been in high demand and this has driven up prices.

According to LSL, the average rent stands at £713 – an all-time high – with tenants paying 1.2% more on average to rent a property in the UK in August than they did in July.

Rents increased fastest in Wales and the South East, up 2.1% in the month. However, the West and East Midlands both noted month-on-month falls, with average rents falling 0.4%.

London experienced the largest annual growth with rent up 6.6%, LSL said.

Commenting on its analysis, David Newnes of LSL said: “We are in the thick of the busiest time of year for the rental market, and red-hot demand for properties is driving rents up at their fastest monthly pace in the last 12 months.

According to Mr Newnes, average rents have risen by more than £50 a month in the last two years.

Rents are on an upward trend and LSL believe that it is unlikely that tenants will gain respite any time soon.

Research shows many tenants in rented properties would like to get a foot on the property ladder but are unable to do so unless they have a deposit of around 20% in order to secure a mortgage.

In the meantime, tenant arrears rose for the first time since April, with 10.7% of all UK rent unpaid or late by the end of August, up from 9% in July.

LSL cautions that tenants will face mounting pressure over the medium term, particularly as inflation remains high and public sector job losses take effect.