Achieved rents reached their previous peak in April after a spring surge in tenant demand, according to the latest Buy-to-Let Index from LSL Property Services plc, which owns the UK’s largest lettings agent network, including Your Move and Reeds Rains.

In April, the average rent in England and Wales rose by 0.8% to £692 per month, matching the record high reached in November 2010. The recent growth means that rents are now 4.4% higher than a year ago, the highest annual inflation since November 2010. The average yield reached 5.1% in April as rents increased at a faster rate than rental property prices.

David Brown, commercial director of LSL Property Services said: “The rental market is heating up as thousands of would-be tenants have taken advantage of the weather and long weekends to hunt for new homes to rent. Even a slightly stronger supply of rental property has failed to cool rental inflation as landlords take advantage of the growing number of mortgage products available. Competition is fierce and tenants are paying a premium to secure properties. The average landlord is charging nearly £30 more a month than a year ago, and the rate of increase is unlikely to tail off as lending to first-time buyers remains subdued and demand for rental homes is stronger than ever.”

Monthly rents in London have been soaring at the fastest pace in the country over the past year, increasing by 7.9% since April 2010, reaching £988 in April 2011. The second highest rise has been in the South East, which saw monthly rents increase by 5.7% in the past year to £705. Only the East of England has seen rents decline in the past year, falling slightly by 0.8% to £709 per month.

Compared to March, rents increased the most in the South West and the East of England, rising by 1.7% and 1.6%. Rents only declined in three regions – the North East, where they fell by 0.7%, and the South East and East Midlands, where rents fell by 0.1% in both regions.