The HomeLet Rental Index shows that rents continue to rise across the country, with UK rents up 11.8 per cent compared to the same period in 2014.

New tenancies in Scotland commanded rent prices 11.2 per cent higher than over the same period last year, while rents increased in every other region of the UK besides the North West of England.

Martin Totty, chief executive officer of HomeLet parent company Barbon Insurance Group, said: “The July HomeLet Rental Index demonstrates just how broad-based the rise in rent prices has now become – this is a UK wide trend. Regions which have long been associated with a buoyant rentals sector, such as London, continue to experience rising prices, but rents are also rising in many other parts of the country at similar rates.

“The South-West of England, for example, is benefitting from its popularity with those attracted to the area for lifestyle reasons, as well as the strong local economy in many of the towns and cities of the region.”

He added: “Over the past few years, price trends in the rental market and house purchase market have been very similar.

“However, across the first half of this year, house price growth has slowed whilst rental values have continued to increase, perhaps reflecting a change in the relative attractiveness of renting versus buying over this recent period.

“With early signs of the cost of mortgage finance starting to edge up, it will be interesting to see if this recent trend continues or if the change in buy to let mortgage interest tax relief announced in the Summer Budget has any indirect impact on rental values with some suggesting it could further stimulate rental values over time if supply of rental properties is constrained as a consequence.”