Average UK rents are now £969 per month, according to Zoopla, £62 a month more than at the beginning of the pandemic.

And they’re increasing at an annual rate of 8.3%, the highest level of growth for 13 years.

The property portal found that demand for rented property soared by 76% in the New Year, compared with the same period between 2018 and 2021.

Regional rents

Rents have risen in every region of the UK during the past year, with London seeing the strongest growth of 10.3%, while increases were weakest in Scotland at 4.8%.

However, because rents fell in the capital during the pandemic, they are now only £18 a month more than they were in March 2020.

Zoopla also found that renters are now returning to the centres of major cities, such as London, Manchester, Birmingham, Leeds and Edinburgh.

Future outlook

The ongoing shortage of rental homes is expected to support growth in rents in the coming months, particularly in city centres, although affordability constraints will act as a brake on larger rises.

Gráinne Gilmore, head of research at Zoopla, said: “The January peak in rental demand will start to ease in the coming months, putting less severe pressure on supply, which will lead to more local market competition, and more modest rental increases.

“The flooding of rental demand back into city centres, thanks to office workers, students and international demand returning to cities, means the post-pandemic ‘recalibration’ of the rental market is well underway.”