The inability to obtain mortgage lending has pushed many households into rental properties.  There are also plenty of households that have chosen renting as a lifestyle to avoid mortgage debt in a weak economy.  Overall with many choosing renting and still many others being forced to rent the demand for rental property has risen to the highest levels seen in decades.  This increase in demand has pushed rental costs to record highs in some areas.

According to LSL Property Services’ Buy to Let Index the level of rents for England and Wales increased in September to £718.  The previous high had been seen the month before in August at £713.  Six regions experienced a record high including London, the South East, Yorkshire and the Humber, the East of England, Wales and the East Midlands.

David Newnes, estate agency managing director of LSL Property Services, said, "It's not just a regional phenomenon, localised to London and the South East - rents are rising across the board. In areas of the highest demand, such as the capital, competition is driving up rents at a faster rate - but 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."