March saw the cost of being a tenant rise for the second consecutive month, according to research by lettings agent network LSL Property Services, which revealed that the average rent charged by landlords in England and Wales rose by 0.4% to £687 during the month.

This latest increase means that tenants are now paying 4.2% more than they were a year ago, as demand for rental property continues to outstrip supply. As a result of the hikes, rent costs are now at their highest level since November 2010, which was the peak level before the traditional dip heading into the festive season.

If the rent rises continue at their current pace, the group has predicted the cost of renting a UK property in a year’s time could reach an average of £715, with London-based prices hitting as high as £1,050 a month.

Results showed that there continues to be strong regional variations, with six regions of England and Wales seeing increased rents during March, while they were reduced in four.

The East of England saw the strongest rent hikes at 2.2%, followed by the South East at 1.7%, while rents in London have soared by 7.3% during the past year.

But at the other end of the spectrum, landlords reduced the amount they charged by -1.6% in the South West, leaving rents -2.4% lower than a year ago, and by -1.3% in the West Midlands. The cost of being a tenant in Wales is also -1.5% cheaper than it was 12 months earlier.