According to LSL Property Services’ latest buy-to-let index, the average rent in the UK rose by +0.6% to £633pcm in April, +2.2% higher than a year ago.

This is the third consecutive month of rising rents and they are now just £25pcm lower than their peak in August 2008. Yields on buy-to-let property rose to their highest level all year at 4.8%, as rent increases narrowly surpassed slowing house price inflation. The monthly increase in house prices for the average rental property slowed to 0.4% in April – a drop from the +2.1% increase seen in January.

The total return from investing in buy-to-let, according to the index, over the last 12 months reached 12.8%. The average landlord would have made £19,765 in the past year - £7,115 in rent and £12,650 in capital appreciation. This is the 14th consecutive month that annual returns have improved.

Improved annual returns have been supported by a second consecutive month of strong performance from tenant arrears. Some £220.3m of all rent in the UK was unpaid in April, a drop of £7m from March. This represents 9.7% of all rent, the lowest figure since LSL Property Services began compiling the figures two years ago.