The average property rental price fell for the second month in a row during January as investors piled into the buy-to-let market, research indicated today.

The average rent in England and Wales dropped by 0.3 per cent to stand at £682 a month, as a rise in professional landlords helped to ease the mismatch between supply and demand which had been pushing up rents.

Lettings agent network LSL Property Services also said that despite the fall, rents were still four per cent higher than they were a year ago, after they hit record highs during the second half of 2010.

And in Shropshire, one county agent claimed the county’s residential rental stocks were fast drying up as demand remained strong.

Jayne Tart, head of residential lettings at Balfours, said: “As we hit the early spring, market demand is still increasing.

“Even back in November we had a ratio of five prospective tenants for every property available.

“The average rental in Shropshire is hovering around £650 to £700, though the national average is £850, with the national ratio running at ten prospective tenants to every property.”

Balfours, which has offices in Shrewsbury, Craven Arms and Much Wenlock, said a combination of factors had brought about the unprecedented need in Shropshire — not least because there was a massive shortage of social housing and there were no council properties to let.

Add to this the fact that virtually no houses are being “built to let” and people are understandably staying in their current rented accommodation longer, Mrs Tart claimed.

“We are experiencing tenants who are staying where they are, either because they can’t afford to move, or don’t want to because they would rather not upset their outgoings while there is uncertainty in the economy.”

Explaining the national picture, David Newnes, estate agency managing director of LSL Property Services, said: “The recent loosening in the buy-to-let mortgage market has boosted the supply of rental homes on the market, a crucial factor in the temporary drop in rents.”

Overall, the group estimates that a total of £258 million of rent went unpaid last month.