The Royal Institute of Chartered Surveyors (RICS) said more surveyors reported a rise in tenant lettings this month compared to last month.

RICS spokesperson Jeremy Leaf said: “Current economic uncertainty has created an ideal platform for buy to let investors to cash in on rising rents.

“Many would be buyers have decided to wait and see how the interest rate cycle will effect the market.” The result has been rising demand for rental accommodation.

Though rents are rising, buy to let landlords are at the same time experiencing rising borrowing costs, and RICS expects that buy to let investors will struggle to obtain funding in 2008, as lenders become more discriminating.