Despite falling on a monthly basis between November and December 2014 by 0.1%, average rents increased by 3% during 2014, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.

The average residential rent across England and Wales is now £767, compared to the £745 figure recorded in December 2013.

Adrian Gill, director of estate agents Reeds Rains and Your Move, said: “There appears to be a new fire in the rental market as we enter 2015.  Demand for homes to let is hotter than we would normally expect at this time of year.

“Recent months have shown a divergence from usual seasonal norms. Historically, there is a tendency for rents to ease in the winter, particularly December. With fewer tenants willing to relocate in the festive period, landlords usually compete to fill empty properties and agreed rents tend to dip as a result. Last month that happened – and rents fell compared to November – but by much less than the usual extent.

“In particular a jobs boom across the eastern regions of England has seen a larger than usual number of people relocating in the winter months. This has pushed up rental prices in these regions even further.”

Cooling property prices have meant that landlords’ total returns have fallen by 11.1% in the 12 months to December 2014. Tenants meanwhile have been feeling a festive squeeze as 8.9% of rental properties are currently in arrears, according to this report.