In the index put together by LSL Property Services, landlords in England and Wales now charge an average rent of £753 a month.
A year ago, the average was £738 and LSL says the rise has been enjoyed in nine out of ten regions they monitor.
Areas with greatest rate of rent increases
The fastest increase of the year has been seen in the south-east with a 3.8% rise, in the north-west it was 3% and in London it was 2.3%.
However, the gross yield for rental property in England and Wales was slightly down compared to a year ago to 5.1%.
Taking price growth into account, as well as void periods, the average rental property now has an annual average return of 10.3%.
Average income for landlords grows
LSL says that the average landlord will have an income of £17,307, before deductions or mortgage payments, which consists of £8,168 in a rental income and a capital gain of £9,140.
Looking forward, the experts at LSL are predicting that the average buy to let landlord will enjoy annual returns of around 8.5% for the coming year or the equivalent of £15,050 per property.
Landlords in Scotland have also enjoyed higher rents, according to HomeLet Rental Index, who say that rents have risen by an average of 10% since June.
Homelet says rents in all regions increase
The same survey says that for the first time rents have increased in every UK region by an average of 4.4% since June.
In their calculations, the average rent now being paid across the UK is £900 a month, which compares to £825 being paid last year.
While Scotland enjoyed the biggest rise in rents, from £578 to £636 between June and July the strongest market is still in the Greater London area with a 9.4% rise.
Other regions that have performed strongly include Wales, East Anglia and the South West.
London prime location rents fall
However, real estate firm Chestertons says that average rents being charged in prime London locations have fallen by 0.8% in the year to June.
The best performing area in London was Fulham were rents have grown by 7.6% and the worst performing area is Battersea which saw a fall in rents of 3.5%.
The report from Chestertons point out that: “Many households will be forced into the private rented sector because of mortgage lending criteria being tightened and the likelihood of interest rates rising before the general election next year.
“Rents are likely to continue increasing gradually for the remainder of this year with a likely rise in the number of 'forced' renters.”
