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Grainne Gilmore, head of research at Zoopla said: “The swing back of demand into city centres, including London, has underpinned another rise in rents in quarter three, especially as the supply of rental property remains tight.”
“Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location.”
Demand for coastal and rural locations was particularly evident in the south-west which was found to be the fastest growing region with rental costs up nine percent.
In Purbeck, Dorset, rents increased 16.2 percent year on year giving it the UK's highest rate of rental growth.