Rents increased 1.2% in February bringing an end to the short period of decline over the holidays and January.

The number of residential properties offered for rent also fell over the past two months as “accidental landlords” return to the sales market. This reduction in supply is pushing up rents due to the tenant demand for properties.

The average rent is now £814 pcm as opposed to £804 pcm in late January according to statistics by FindaProperty.com.  However this is still 1.9% lower than a year ago when rents were averaging £830 pcm and investors are warned that it will take some time before rents return to this level.

This increase in rental values is largely due to the reduction in supply. The number of rental properties available on the market declined by 3.6% in February, the lowest level since November 2008. Landlords can continue to expect rents to rise in the coming months.

Many parts of the north, who were heavily hit by the recession, have reported some of the most significant rental increases. Rents increased by 5.5% in the North East, 2.3% in the North West and 2.5% in Scotland. The only place where rents remained stable was in the South West at £797 pcm.

Nigel Lewis of FindaProperty.com said that this rise in rent throughout the country is almost certainly sparked by the fact that the buy-to-let sector is no longer awash with a large surplus of properties due to the departure of accidental landlords.

It is important that landlords take out the appropriate Landlord Insurance to protect themselves and their property.