Rents hit new high in London The cost of renting in London reached a new high in March as would-be homebuyers struggling to get a mortgage continue to turn to the private rental sector. Rents in the capital rose by 1.3 per cent over the past month, pushing average rents to £1,106 per month, according to the LSL Buy-to-Let Index. Over the past year, rents in London have climbed compared to other regions in England and Wales, with prices rising 7.9 per cent. David Newnes, director of LSL Property Services, described rents in London as "red-hot." There is an increasingly big divide between the cost of renting in London and the cost of renting elsewhere. But the overall picture is clear. With only modest improvements in the UK's housing supply, rents will keep being forced upwards," said Newnes. It comes as concerns grow that tenants are becoming priced out of the rental sector. However, mortgage availability for first-time buyers has started to improve in recent months, which could help ease rental demand and prices. The number of first-time buyers securing a mortgage reached a five-year high in the first couple months of this year, according to data published by the Council of Mortgage Lenders this week. While the lack of rental property is making it more difficult for tenants to secure an affordable tenancy, it is boosting yields for landlords. Rising rents saw the average yield for London property investors increase to 5.1 per cent in March, up from 4.9 per cent in February.