The annual rise in residential rents in the UK was 1.6 per cent in August, according to latest data released by international property consultant Knight Frank.

However, the rent was uniform across the countries. Rents in England increased by 1.7 per cent, Wales 1.3 per cent and Scotland 0.3 per cent.

In central London, prime rents for existing homes remained static for the second consecutive month in August, taking the annual decline to 3.4 per cent. This is the smallest fall recorded in more than a year, amid more constrained stock levels and rising demand.

Meanwhile, house price growth across the country continues to moderate, while the prime London market shows signs of regaining momentum. In a reversal of the trend seen in recent years, higher-value properties are now outperforming in terms of price change as the market adapts to higher rates of stamp duty.

Transaction volumes in the market continued to recover during the month, with the number of residential exchanges in prime central London some 5 per cent higher in the first seven months of this year than in the same period last year.

There are also indications that activity could continue to rise, with an 8 per cent rise in the number of new prospective buyers registering between January and August 2017.