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Rents rose by 3.1% in the year to August, taking the average price from £885 per month to £913, according to new data from specialist insurance provider HomeLet.
Delays in getting on to the property ladder could see young people still paying off their mortgage well into their 60s, a new report has highlighted.
Rent on properties outside London rose to £755 a month in the three months to March 2016 - 4.9% higher than the same period a year ago, according to latest data.
The Chancellor has announced that the amount that householders can earn by renting out a room will rise to £7,500 a year tax-free.
UK rents are the highest in Europe at £730 (€902) a month, research from the National Housing Federation (NHF) has revealed.
Private rents across England and Wales have reached a record high average of £774 a month.
Young families and workers say they are giving up on the idea of ever owning their own home despite 2014 seeing the highest level of first-time buyers in seven years.
One in 20 Brits are renting out a property to top up their income, earning an extra £678 a month on average.
More than a third of renters have had to shell out £63 on average to have something fixed in their property.
The amount of rent paid by tenants in England and Wales reached an all-time high of £761 a month in August, with landlords expected to make a return of 17.2% in the year ahead.
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