The latest Sequence National Rental Report, for November, shows a high level of activity with a 20% annual increase in the number of new tenancies agreed.

It found that UK rents, excluding London, are up 4% annually to £713, whilst there is a seasonal dip of 1% on the month.

UK tenant demand is up by 14% annually, while supply is declining by 17%. Six tenants chase every rental property across the UK, up from less than five a year ago .

London rents have risen 6% annually to £1,580, though there is a seasonal drop of 1% on the month. Eleven tenants chase every new rental property in the capital, up from less than 10 last month.

Stephen Nation, head of lettings for Sequence, said: “Demand for rental properties has increased dramatically, up 14% annually due to many would-be buyers being priced out of the property market. This is resulting in a soaring number of new tenancies, which are up by a fifth on the year and the competition for properties has driven up rents, which now sit at £713.

“In London this trend is even more acute, with the number of new tenancies up nearly a third on the year. Demand for rental properties is up 57% annually, while supply has declined by 10% over this period, resulting in increased competition for each new rental property coming onto the market. In fact, this month saw the number of tenants chasing each new property to rent surge to 10.5/1 in the Capital, the highest level for over three years.

“The number of buy-to-let mortgage applications has cooled annually by 6% however this is compared to last year when the market was particularly strong. To put the market into context, current application levels are still 46% above October 2012. While interest rates are not predicted to rise for some time and we continue to see strong tenant demand growth and rising rents, investors will continue to be attracted to this market.”