To let signs as rents soared to a new high last month

The cost of renting is rising and nowhere is climbing faster than London, a study has revealed.

Rents are rising at their fastest on an annual basis in the capital city - climbing by 4.8 per cent to also reach a new high of £1,057.

Meanwhile, on a monthly regional basis, rents in the South East climbed the fastest, increasing by 2.2 per cent to reach £746.

The typical rent in England and Wales rose by 1 per cent to £725 in July, surpassing a previous high of £720 per calendar month recorded in October last year.

The figures were revealed by lettings network LSL Property Services.

This meant that the pace of annual rental inflation has also increased, climbing to 2.9 per cent from 2.4 per cent in June.

David Newnes, director of LSL Property Services, said: “The backlog of frustrated first-time buyers in the private rented sector showed no sign of clearing in July - in fact, it is still growing.

“As lending to those without substantial deposits remains depressed, demand for rented accommodation can only go one way in the long-term - providing further upwards momentum for rents.

“The rental market is also entering its summer peak, as recent graduates and those with new jobs begin to look for new accommodation.

“With more tenants on the move, alongside long-term underlying demand, fierce competition for properties is enabling landlords to increase rental prices to new highs.”