Wales saw the highest year-on-year increase in average rent prices out of all UK regions, new data revealed.
The average rent there is now 12.8% higher than this time last year, up to £723 ($1,000) per month, according to HomeLet’s Rental Index.
This was followed by the South West, where rents went up by 11.9%, and East Midlands, where they were up by 10.7%.
Rounding up the top five regions with the most rental growth was Scotland, where annual rents went up by 9.6% and are now £758, and East of England, where rents increased by 7% to an average £1,021.
Overall, the average rent in the UK hit a record high of £1,053 per month in August, up 6.9% on the same time last year, new data revealed.
The rent is also up 2.3% when compared to July.
London saw the largest monthly price rise out of every region in the country.
“There are signs of recovery in London, which sees another price rise after a year of decline, with an annual variance increase of 3.6% to £1,713 per month,” the report said.
“We may see London accelerate at a faster rate than the rest of the country in the coming months, as international travel ramps up and rates of working from home move in the opposite direction,” said Rob Wishart, HomeLet & Let Alliance head of business intelligence.
The monthly rise of 4.1% in London was steeper than any other area of the country.
Excluding London, the average UK rent price is up to £892 per month, up 8.1% year-on-year.
The only area in the UK that did not see a monthly rise was Northern Ireland, where rents stayed at an average of £704 per month.
“Typically, rents for new tenancies will rise in line with the rate of inflation, but that’s not been the case in the past few months,” said Wishart.
“The demand for housing and certain property types is outstripping supply in many areas, causing upward pressure on rental prices.”
He says Brits can expect the increase in rents to continue for the foreseeable future, with many regions now seeing unprecedented demand for housing stock.
"Consistent yields over the long term coupled with capital appreciation have only bolstered confidence in the industry even in the face of the disruption we’ve had over the past 18 months," added Wishart.
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