Advertised rents rose for the second consecutive month in March 2010, with an increase of +0.7% taking them to £820pcm, according to Findaproperty.

Rents for houses increased by +0.7% to £846pcm, with rents for flats going up +0.8% to £767pcm, the highest they have been since February 2009. Despite these increases rents are still -6% below their peak levels, with the increases attributed to the lowest stock levels since October 2008.

Nigel Lewis of FindaProperty said: “The rental market has had a tumultuous two years but those landlords who managed to hang on despite the oversupply of properties and falling rents can now see the light at the end of the tunnel.

“While rents are still a long way off the peak seen in early 2008, they are slowly rising and the current tightening supply levels as accidental landlords leave the market coupled with strong demand should ensure that returns for serious landlords continue to improve over the course of the year.”

The number of properties available to rent fell -4.2% in March 2010 and has dropped -7.6% since January 2010. The supply of houses available to rent fell -6.9% in March, the lowest level since August 2008 and the availability of flats to let also decreased by -2.7%, the lowest level since December 2008.

Five regions across the UK saw increases in rents during March with the South East leading the way with an increase of +2.3% followed by the East with a rise of +2%, however the West Midlands and the North East both saw declines of -1.4% and -2.3% respectively.