Newly let rents increase 4.5pc

On a regional basis rents increased by 3.1% in Central London while they decreased by 1.9% in the South East from the fourth quarter of 2014.

Rents increased by 0.8% and 0.4% for one and two bedroom properties over the period to stand at £730 and £817 per month respectively. Rents in three and four bedroom properties remained stable, standing at £939 and £1,435 per month following a 0.1% decrease.

Nick Dunning, group commercial director, Countrywide, said: “Stable rents and declining arrears reflect healthier economic conditions in the UK rental market in the run up to the General Election.

“Zero inflation and rising incomes means that on average the cost of living has decreased and this is having a positive impact of consumer’s confidence and disposable income.”

On renewed tenancies the average rent is £848pcm, an increase of 0.8% month-on-month and 2.3% year-on-year.

Most property sizes remained stable, except from one bedroom properties which saw a 4.3% increase from February.

On a regional basis rents increased by 13% on renewed tenancies to £654 per month, while they decreased by 2.3% in Central London.