The boom in Britain’s property market is fuelling a huge jump in profits for the country’s growing army of Buy to Let landlords.

Near record rental values coupled with the rise in house prices will generate average returns of 13% in the next twelve months, more than £22,000 per property, a report found.

It also revealed rents are within £1 of their all-time high at £743 a month in England and Wales. August’s figure marks a 0.7% increase on July and is up 1.3% on August last year.

David Newnes, of lettings giant LSL Property Services, which released the report, said if rental property prices continue to rise at the same pace as over the last three months the average buy-to-let investor should make a total annual return of 13.1% over the next 12 months - equivalent to £22,065 per property.

London is driving the rise in rents in the capital rising three-and-half times faster than England and Wales over the last 12 months.

They are now averaging £1,126 in London, 4.8% higher than last year. Official figures also showed that house prices in London are up by nearly 10% year-on-year, indicating the strength of demand for homes in the capital.

Wales saw the second biggest annual increase in rents, with a 2.3% uplift taking average rents to £561. The South East recorded the strongest month-on-month growth, with a 2% rise pushing monthly rents to £762.

The North East saw the biggest month-on-month drop in rents, with a 0.8% fall taking average rents to £523.

LSL’s findings are based on rents achieved on around 20,000 properties and its records go back to January 2008.

The findings will spark fresh concerns that Government cheap credit schemes designed to kick-start the housing market are helping wealthier investors rather than first time buyers struggling to get onto the property ladder.