Homeowners struggling to sell their properties in the open market are increasing choosing to let their homes, according to the Royal Institute of Chartered Surveyors (RICS)

RICS have suggested that rather than accept lower offers on their properties, people are looking to take advantage of high rental yields through the lettings sector.

RICS' data shows that demand for rented property is increasing, with 23% of surveyors reporting a rise in gross yields. By way of comparison, that figure was 5% at the end of 2007.

Buy to Let investors themselves seem to be staying in the sector and not selling up too, as the research also shows the proportion of landlords selling their properties has fallen, down from 4.6% to 4.2%.

James Scott-Lee, spokeman for RICS, says: “The sales market's loss is the lettings market's gain. Some would-be sellers are retreating from selling and letting or re-letting their properties as they wait for mortgage lenders to offer buyers more favourable lending criteria.

“While transaction numbers in the sales market are weak, many are taking advantage of rising rents and yields in the private lettings sector.”