Rents in England and Wales rose for the ninth consecutive month during October to reach a new record high, research showed yesterday.

The average cost of renting a property jumped by 0.4 per cent during the month to £691, 4.5 per cent higher than in October last year, according to LSL Property Services, which owns the UK’s largest lettings agent network.

The group said rents were continuing to be driven up by high demand for rented accommodation, as potential buyers were either forced to put their plans on hold due to the problems in the mortgage market, or chose to wait in the hope that house prices would continue to fall.

But the mortgage drought is also preventing landlords from expanding their property portfolios to meet the rising demand, further contributing to the rent increases.

David Newnes, estate agency managing director of LSL Property Services, said: “Rents have been creeping upwards, month in, month out for the last year, and now stand just a few pounds shy of £700 per month.

“The recent increases are likely to steady slightly in the run-up to Christmas – traditionally a slower time for the market. But a strong underlying growth will remain, as the key market dynamics are geared towards further rises.”

Rents rose across the whole of the UK during the month, apart from in Yorkshire and the Humber, where they fell by 1.4 per cent.