A rising number of homeowners are renting their properties because they unable to sell them, according to recent figures.

The downturn in the housing market is being blamed for the trend, with the Royal Institution of Chartered Surveyors (RICS) saying instructions to let properties had increased at their fastest pace during the three months to July since its survey began.

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

The credit crunch and the current housing market has also seen the demand for rented property rise as people put off buying somewhere or are unable to raise funds for a mortgage.

The group said demand for family homes was particularly strong, with 43% more surveyors reporting an increase in the number of house lettings than those who saw a fall, compared with 34% more who reported a jump in demand for flats.

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 in the sector.

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.

"Many are willing to 'hold' and await the return of capital appreciation. Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns.

"Established investors have been reaping the benefits of the housing downturn for sometime and will continue to do so in the short term. However, ever-increasing supply could have an impact on rental growth as tenant options increase."

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