Countrywide’s lettings index found that average rent in the three nations has reached £866, the highest level seen since the start of 2011.

The highest yields were to be found in Wales where the typical buy-to-let investor could expect a return of 6.6%. Central London continued to lag behind the rest of the country with an average yield of 4.8%.

However, rents remained higher in the centre of the capital that anywhere else in the country. Average rents in Central London, Greater London and the South East continued to break the four-figure mark, reaching £2,414, £1,113 and £1,105 respectively.

Rents have grown quickest in Scotland in the last year although it remains the cheapest place to let a property with an average rent of £635, Countrywide said.

The level of rent arrears fell in Wales and all areas of England outside of the capital.

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Nick Dunning, group commercial director at Countrywide, said: “Despite more competitive buy-to-let mortgages encouraging investors to expand their lettings portfolios and increase the supply of rental accommodation on the market, we have on average 4-5 tenants for every rental property we are marketing.

“Rental values are being underpinned by the increasing number of people living in the private rented sector and rents are likely to continue rising unless supply and demand becomes more aligned.”