THE squeeze on tenants’ finances in the overheated private rental sector showed no sign of easing last month as rents reached another new high.

Typical rents increased by 3.2% annually to £741 a month across England and Wales, the fastest year-on-year rise seen since February, according to research from Newcastle-based lettings agent network LSL Property Services, which owns national chains Your Move and Reeds Rains.

Tenants’ budgets worsened compared with the previous month, with 9.1% of rent late or unpaid at the end of September, although this was still below the 12-month average of 9.5%.

LSL said that any sustained fall in rents will hinge on would-be first-time buyers being able to get better access to low-deposit mortgages.