DEMAND for rented flats and houses has risen to its strongest so far this year as relentless property price rises force many first-time buyers into renting, according to the latest survey by the Royal Institution of Chartered Surveyors (RICS).

Competition between landlords has continued to hold down rental levels during the quarter to October. However, outside of London, rents in the South East remain the highest in the country with the average monthly cost of a two-bedroom flat being £675 in the region - no increase from the previous survey.

This compares to £350 in the East Midlands, £500 in the North West and £1,473 in London.