Reluctant tenants who cannot raise a mortgage are starting to push up rents and demand for buy to let properties as yet another lettings firm reports rents are rising year-on-year, although not as fast in all regions of the UK.

The statistics are showing a groundswell starting to pick up as more and more would-be homebuyers look to renting because they cannot raise mortgage funds or deposits.

Paragon Advance, providers of products and services to the lettings industry, has released average rent statistics for 2010 based on their tenant referencing figures for the six months ending June 30.

London and the South East command the highest average rent at  £949.40 per month, a 5.47% increase on the same period in 2009, followed by the East of England with average rents of £808.00, a 4.66% increase on the same period last year.

Average rents in the South West fell by 1.8% year on year for the same period, but picked up in the second half of 2010 to £703.21, a 1.24% increase on the same period last year.

Rents in Scotland  were considerably lower at £487.78, but this region proved to have the highest percentage increase year-on-year at 12.39%.

Only Wales and the North West showed a decrease year on year with £450.72, a decrease of 8.6%, and £563.42, a decrease of 1.7%, respectively.

Paul Abbott,  head of Property and Mortgages at Paragon said: “While there is a high desire to purchase property, the banks demand for large deposits often makes renting the only option for a number of people and so the rental market has remained buoyant during the first six months of 2010.”