Its latest figures revealed that record highs were reached in six regions in September: London, the South East, Yorkshire and the Humber, the East of England, Wales and the East Midlands.
Average rents increased 0.7% in September, up £5 a month on August’s record of £713.
On an annual basis, rents increased 4.3% on September 2010, leaving rents an average of £29 a month more expensive than September last year.
As a result, average yields have increased 0.1% to 5.3%. However, total annual returns for landlords dropped to 1.8% as property prices fell on an annual basis, equivalent to £3,005 to £7,661 in rent, with a capital loss of £4,666.
Rents have increased fastest in the South East and East Midlands, rising 1.8% and 1.1% respectively on August. The smallest growth was in the West Midlands and North East at 0.2% and 0.3% respectively.
Unsurprisingly, London rents have increased at the fastest pace of any region over the last 12 months, up 5.8%, followed by the South West at 5.4% and West Midlands at 5.1%.
However, despite the rapid growth in average rents, tenant arrears have dropped to their lowest level since April 2010, with 8.6% of all UK rent unpaid or late at the end of September, down from 10.7% in August.
Unpaid rent across the UK totalled £243m, down from £300m in August.
David Brown, commercial director of LSL Property Services, said: “No region has been immune to the growing demand for rental homes from frustrated buyers. In many cases, buying a home is now cheaper on a monthly basis – provided renters can get past the stumbling block of the substantial deposit requirements.
“For the majority, saving a £25,000 deposit is a Herculean task, as inflation and rents climb – and most would-be buyers are biting the bullet and prolonging their stay in increasingly costly rental accommodation.
“As things stand, we won’t see competition amongst prospective tenants diminish without a substantial expansion in the supply of rental properties available on the market.”
