Two companies claim differing Buy to let rent increases year on year and begs the question which one is right ?

A landlord insurer claims that rents went up by 7.6% in July year on year, while a national letting agent dismisses this by stating that it was in fact only 2%.

The insurance company says that in the three months to July 31st this year that the average rent growth was higher than 2011 by 6.5%, 2012 - 2.3% and 2013 4.6%.

It also claimed that average tenants' wages rose by 4.8% over last year and that average rents for new tenancies increased by 7.6% over 2013.

Outside of London the average UK rent was up by 3.3% and stands at £723 per month. In the capital average rent is approximately £1,429 per month, whilst in 2013 it stood at £1,295 per month.

However the national letting agent disagrees as their figures shows that yearly rents rose by 2.0%. This is the highest rise since the rents reached the same levels in November last year with an average of £753 per month.

It also claims that landlords yields had dropped by 10.3% a year and did agree that tenants enjoyed increased incomes as rent arrears dropped from 8.1% in July 2013, 7.8% in June this year and is now 7.3%.

The letting agents' director David Newnes said: “The rental market is approaching its busiest period – yet rent rises remain modest.

“Tenants looking to rent a new property this month still need to budget the same as they would have in November. At a time when the country is facing a serious shortage of homes, and with purchase prices rising steadily, that is an immense achievement for the private rented sector.

“Rents have tracked inflation for many years – and as of July remain down 0.2% in real terms since the start of 2010. This is testament to serious improvements in the supply of new homes to let, thanks to investment by landlords. If that investment keeps flowing, and the right incentives for new landlords remain, this positive trend should continue.”