Shortages in the housing market mean tenants are paying above asking prices, with average advertised rent skyrocketing as a result, data shows.
A study by the property website Rightmove PLC (LSE:RMV) found that Greater London saw average advertised rent prices increase by 16.1% over the past year.
Some regions saw even bigger increases, with advertised rent increasing by over 20% in areas of Berkshire and Manchester, alongside high teens percentage rises in Cardiff, Edinburgh and Birmingham.
Costs are expected to rise further too, as increasing mortgage rates continue to push potential buyers in the rental market, adding to already mounting demand, according to the study.
On the demand for housing, Rightmove found there were 9% fewer available properties on the market, with demand for rentals increasing by 20% overall.
Other reports also suggest that rental price increases are likely to continue, with a slowdown in rises looking unlikely to happen any time soon, according to the Institute of Chartered Surveyors and the Association of Residential Letting Agents.