It is predicted that rent rises over the next five years will outstrip house price growth, according to an estate and lettings agency.

The agency says the three issues of the rental housing stock decline, economic situation and rising mortgage costs are severely impacting the private rental sector.

The spokesperson for the agency, says: “Rental records continue to topple month-on-month across England and Wales. The upward price trajectory continues as the gap between supply and demand shows little sign of easing.

“The rental threshold of a prime market property across England and Wales now stands at £2,750, with the average prime rent at £3,661 per month. In both the main and prime markets, value growth in London is most marked.

“The average rent for a prime property in the capital has now reached £5,000, which is close to £200 per week higher than a year ago.

“Apartment living is back in vogue in many city centre locations, with Rightmove reporting a significant uptick in demand for smaller apartments, with studio flats overtaking one-bed properties as the most in-demand apartment for renters.”

The agency claims that there are more than four million households renting homes with most of them owned by PRS landlords.

The British Property Foundation predicts that by 2032 at least 8 per cent of private rental housing stock will be supplied by Build to Rent properties.

The spokesperson adds: “Many landlords are unaware of this sector. A landlord and tenant insurance company’s survey data suggests just 48 per cent of professional landlords have heard of Build To Rent, falling to less than one in five of accidental landlords.

“The number of BTR homes is forecast to increase five-fold over the next decade, from 76,800 homes today to 380,000 in 2032.