David Whittaker, managing director of Mortgages for Business, comments: “Rents have been rising much faster than the ONS previously estimated, and this is no surprise to those in the industry. Even a plain vanilla buy to let property now commands an average yield of 6.3%, – while a larger, multi-unit freehold block can provide a landlord with a 9.3% rental yield.

“But rents still aren’t rising much faster than inflation – we’re talking an average annual rent rise of 2.1% over the last couple of years instead of 1.2%. Affordability of renting, like the affordability of most things in an unprecedented economic slump, has been squeezed. But the culprit hasn’t been excessive rent rises. That’s thanks to the vast investment that landlords are pouring into this industry, supported by a healthy buy to let mortgage market. More homes to let are keeping rents from rising at an unhealthy pace.

“Parallel news from the Bank of England only goes to show the importance of investing in the private rented sector. Private renting will continue to dominate the housing market, and as an industry it needs all the investment and financial support it can get.”