The number of tenants seeking rental properties rocketed by 27% in January, a report reveals.
The findings from Arla Propertymark also reveal that the supply of homes to rent fell in the same month.
In their PRS report for January, they say that 81 tenants were registered on average for each branch which is a five-year high - it's the highest since the first quarter of 2016.
The highest number of tenants being registered with a letting agent was 138 for members in Yorkshire and Humberside.
However, the supply of rental property shows that numbers fell from December's figure of 204 per branch to 196 properties in January.
'Rental market is not showing signs of slowing down'
Propertymark's chief policy adviser, Mark Hayward, said: "Our figures show that the rental market is not showing signs of slowing down with demand for rental properties increasing.
"Letting agents continue to support tenants and landlords during these difficult times and it is imperative that landlords maintain tenancies to keep rent flowing."
He added that now the government has laid down a map out of lockdown, they should also consider offering a financial support package to tenants who have built-up rent arrears.
The report highlights that the number of tenants who saw rent rises in January was 39%, that's up from December's figure of 30% - though lower than January 2020's figure of 42%.
Simon Thompson, the managing director of Accommodation for Students, said: "The private rental sector remains strong despite the restrictions of the Covid-19 lockdown.
"The increase in tenant demand is a good sign and is probably down to people wanting to move to a larger property with some space or a rural location."
Six months’ notice now mandatory in Wales
Meanwhile, it has been revealed that the new rental contracts being introduced in Wales from 2022 will include a minimum notice period of six months in most cases.
That's up from two months and landlords in Wales will also be prevented from serving notice on their tenant in the first six months of the tenancy.
The Welsh government says that the new rental contract will be more efficient, simpler and fairer.
The National Residential Landlords' Association's Welsh public affairs officer, Calum Davies, said: "We are glad that the no-reason-given possessions has not been removed by the Welsh government."
He also welcomed moves by the Welsh government to explore better data collection and a housing court for Wales.
Mr Davies added: "It is worth highlighting, however, that some proposals have not been adopted and this could, unfortunately, lead to negative consequences, including landlords leaving the sector."
