Tenants in the private rental sector across the UK paid 1.7% more in rent on average at the end of 2014 than they did at the start of the year, official figures reveal.

According to the Office for National Statistics’ (ONS) data for the whole of last year, rents increased by 1.8%, 2% and 0.2% in England, Scotland and Wales respectively.

In England the rises were highest in London (2.4%) and the South East (2.1%) but every single region saw an average rent increase.

The ONS said it had improved the way it gathered the figures, meaning they have increased significantly. It now employs a new methodology that has changed the Index of Private Housing Rental Prices (IPHRP) time series and the latest figures take this into account.

Zoe Rose, Head of London Lettings at Strutt & Parker, is not surprised by this data and thinks the trend is set to continue. She said: “We are anticipating a slight uptick in lettings prices in prime central London for 2015 – a 2.5% increase; and we’ve already seen 2% growth for lettings in 2014. We hope and anticipate new properties coming to the market, perhaps from would-be sellers who decide to rent in the run up to May 2015 as election fever sets in and the impact of stamp duty changes.”

“Throughout the coming year we hope to see a boost in activity levels and slow but steady growth, which will be underpinned by the simple fact that there are still so many people out there that can’t afford to buy a home in London and these people will continue to rent. Not to mention the large number of people who enjoy the flexibility of renting – global, nomadic types who we refer to as ‘Glomads’.  The threat of rising interest rates rising will also play an important contributing factor.”

Mortgages for Business managing director David Whittaker also commented that many people who are involved in the private rental sector had seen rent go up more than the ONS had reported in the past.

He said the company's Complex Buy to Let Index suggested that even the most basic rental property came with a typical yield of 6.3%, and that the yields on larger freehold blocks with multiple units could be as high as 9.3%

Yet he insisted there was little difference between the rates of inflation and rent rises, with prices going up 2.1% on average compared to around 1.2% in 2012 and 2013.

Mr Whittaker said there had been a squeeze on affordability but he did not put it down to huge rises in rent as the abundance of rental properties on the market is keeping a lid on prices.

He said renting continued to set the pace in the property market, adding that more investment was important as the mortgage market remained fairly stable at the moment.