The number of properties up for rent across the country has jumped to record levels, according to a report by the Royal Institution of Chartered Surveyors that said in July its members saw new instructions from landlords rise at their fastest ever rate. The number of would-be tenants is also rising, pushing up rents nationwide.

Martin Johnson, managing director of the Maidstone franchise of lettings agent Martin and Co said: "There has definitely been a rise in the number of people letting and renting. We have been here for six years and this is the busiest I have ever seen it.

"The last three or four months have been very good for us and this month looks likely to be a record month yet again.

"We have taken on another member of staff to help out. He came from the sales side of estate agency, where as we know things are not so good."

Mr Johnson, whose offices are at Starnes Court, off Union Street, said many of those letting out a property had found themselves unable to sell, and needed to relocate quickly for work reasons.

And young people still unable to afford to buy even the smallest flats despite dropping prices were continuing to rent, as were those older people reluctant to invest in a falling property market.

He agreed that rents were moving upwards, particularly for quality properties.

He said: "If you are buying to let, particularly if you buy ‘outside the box’, or something a bit different, then rents are good, you can say healthy. But if you are buying a two-bedroom property with a view to letting it out it needs to be on a quality development to get the best returns."

According to the RICS survey of residential lettings, 43 per cent more of its members reported a rise in landlord instructions than saw a fall during the three months to July.

RICS spokesperson James Scott-Lee said: "The 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 some time 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."