Six tenants competing for each rental property as demand reaches record high

Typical rent costs in London now account for 60% of the average wage  - but even so, the increase in demand over the past year is nine times the increase in supply, according to research by the estate agency network Sequence.

The research shows rental demand has reached record highs, with six prospective tenants competing for every available rental property. This has caused rents to rise 4% annually and now account for more than a third of the average UK salary.

The rental market in London is much more active with close to seven tenants chasing every available property. Demand in London is rising at more than nine times the rate of supply, pushing average rents to a four year high of £1,515 per month, up 10% annually.

Applications for buy-to-let mortgages - which are not subject to the same level of MMR restrictions as owner-occupier mortgages - have reached the highest level in 2014, increasing by 14% in the year to June.

Contrary to the national picture, supply of homes to let in the capital has increased by 3% since May alone and 5% over the past year. Demand, however, has increased at a greater rate, rising 43% over the year, according to the research.