Rents rose by 3.2 per cent to hit a high of £860 last year, research has revealed.
The Your Move Rental Tracker reported this increase in the cost of rent was the figure on a seasonally adjusted basis in March, but on a non-seasonally adjusted basis, rents increased to £828, which is up 3.5 per cent year-on-year.
Your Move also found the East Midlands was the standout performer, with rents in this part of the country growing 3.2 per cent in the last year - faster than anywhere else.
The data also found that London rents were flat month-on-month.
Martyn Alderton, national lettings director at Your Move, said: "The market in London has stopped its recent slowdown, but still lags behind the strong growth seen in the East Midlands.
"The south west also grew at a strong pace while the north east delivered the strongest yields to landlords.
"This shows that there is something for every investor and landlord, whether yield driven or seeing capital appreciation, in today’s rental market."
Wales was the only region to post a fall, with the average investor return ticking down from 4.8 per cent to 4.7 per cent in the last month.
Your Move found 9.1 per cent of all tenants were behind on their payments this month, which is up on the 8.6 per cent rate recorded in February.
This figure is also more than the 8.4 per cent reported in January's survey.
Kusal Ariyawansa, chartered financial planner at Manchester-based Appleton Gerrard, said: "There is always something for a property investor, albeit not necessarily good, especially given the recent tax changes.
"The long standing belief that property is my pension is almost defunct. In most cases the returns are not worthy of the hassles associated with property.
"It is best to seek professional advice as to whether investing in property is money well spent."
aamina.zafar@ft.com
