Buy-to-let landlords are cashing in on rocketing house prices and selling their properties, causing a slump in the supply of rental homes.

Plunging rental supply means competition for properties has hit a new record high, meaning buy-to-let investors have raised prices by 11pc year-on-year, according to property website Rightmove. Renters have also been forced into bidding wars to secure the small number of properties still available.

Asking rents outside London climbed by 10.8pc to hit £1,088 per month. This was the first time rent rises have exceeded 10pc and means average rents are now 15pc higher than pre-pandemic. 

In London, average asking rents hit a new record high of £2,193 per month, a 14.3pc jump compared to last year and the biggest annual jump in any region since Rightmove’s records began. 

Competition is so fierce because homes have disappeared en masse from the rental market. As well as capitalising on high house prices, a government tax crackdown on the buy-to-let sector has pushed many landlords to sell. Rules introduced since April 2017 have cut reliefs on buy-to-let mortgage interest payments, shrinking many investors’ profit margins.