Rent across the country climbed again during July, building on the increases in the first half of the year, the latest HomeLet Rental Index shows. Outside London rents on new tenancies rose 2.3 per cent, on the same period in 2015. In the capital, rents were 4 per cent higher. The index shows that the average rent in the UK (ex Greater London) is £779 per month, while the average rent in London is £1,599.

The rises were in spite of the economic uncertainties, though the rate of rent growth continues to slow as we enter the second half of the year. We don’t yet know how Brexit will impact the PRS and it will be several months until we see established trends in the market.

It is likely that with lenders concerned about the prospect of falling house prices, loans to value in the mortgage market will become less generous, so more people may rent rather than buy.

The percentage of home ownership has returned to levels last seen in 1986 according to a report by the Resolution Foundation, largely because rising house prices leave more people unable to afford to buy.

Renting will always be attractive to people seeking greater flexibility and HomeLet’s survey of 15,000 tenants revealed that two-thirds planned to continue renting for a year or longer. The good news is that 9 out of 10 tenants said they were happy with the standard of their current rented property; and the majority were happy with the service from their landlord or letting agent. These results are heartening and it will be important for the sector to maintain and drive forward professional standards for mutual benefit.

The fundamental forces in the PRS remain unchanged. Britain’s growing population, the relative unaffordability of house prices and the lack of new homes being built, leaves the private rental sector in an important position, particularly taking account of the reduction in social housing.

The different factors suggest that the sector will continue to be an ever-important source of homes in the years and decades to come.