The housing market downturn is forcing increasing numbers of homeowners to let their property because they are unable to sell it.The Royal Institution of Chartered Surveyors (RICS) said instructions to let properties increased in the three months to July at their fastest pace since its survey began.

RICS spokesperson James Scott-Lee said: "The lettings market is booming with many vendors opting to rent their property while sales in the housing market continue to dry up."

Overall 43% more members reported a rise in the number of new landlord instructions than those who saw a fall, up from 30% during the previous quarter.

The jump has been attributed to frustrated sellers opting to become landlords after being unable to sell their home in the current market.

Tenant demand rose at its fastest rate since 1998 with demand for family homes particularly strong.

Rents continued to rise during the three months, and this combined with falling house prices, helped to boost the yields buy-to-let investors made on their properties.

As a result of rising yields, increasing numbers of landlords are opting to stay in the market, with just 2.1% selling their properties when rental agreements ended, the lowest level since records began in 2003.

But despite the strong level of demand for rented property, chartered surveyors expect rents to fall slightly during the coming quarter, pushed down by oversupply.

Source: Nottingham Evening Post

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