The LSL Buy-to-let index show us how rents rose 1.2pc in August, giving tenants a hard time keeping up with their monthly bills.

The demand for renting homes has increased more than ever, driving prices through the roof. Government figures show that one in six home is rented at the moment, recording a rise of 1pc since 2009.

David Newnes, managing director of LSL Property Service says “recent graduates moving for their first jobs have further exaggerated the long-term and growing demand from frustrated buyers” and that “with significant improvement in the number of buyers able to secure a mortgage unlikely in the foreseeable future, competition for rental accommodation will not drop and further rent rises remain on the cards.”

Jonathan Moore, from housesharing site Easyroommate, said that 200,000 more people were forced to move with rent in the last year. “Lenders’ unrealistic deposit requirements, combined with hefty house prices have left the private rented sector groaning under the strain of demand from frustrated first-time buyers,” he warned. “Such strong competition for limited accommodation is taking its toll on rents, and they will continue to climb for as long as the mortgage market remains at a standstill.”

Via Telegraph