The latest figures from the HomeLet Rental Index reveal that rents on new tenancies signed on a UK rental property outside of London over the three months to March 2016 were, on average, 4.9% higher than in the same period of last year. In the capital, meanwhile, those signing up to new tenancies in the private rental market agreed to pay an average rent that was 7.7% higher than a year ago.

HomeLet’s research shows that rents continue to rise significantly ahead of inflation, with demand for property remaining strong. However, the March data comes ahead of reforms that are predicted to have a major impact within the sector, including a stamp duty increase for landlords buying new properties to let, new rules from regulators on buy-to-let lending and limiting tax relief on mortgage interest payments to the basic rate.

HomeLet’s own data already shows evidence of landlords taking action ahead of the stamp duty changes. In March the specialist provider of Landlord Insurance saw a marked increase in enquiries from property investors, with 37% of insurance policies being purchased by landlords with new properties compared to just 24% in the same period last year.