An "acute shortage" of family properties to buy in Margate has had a positive impact on the local lettings market, according to a leading property website.

Kent-based lettingsearch.co.uk described the prospects for landlords as "excellent", citing a shortage of second hand homes to buy and the cautious attitude of homebuyers uncertain of house prices and mortgage availability.

The website, which lists more than 260,000 properties, saw a 20 per cent increase in rental inquiries in January compared to the same month in 2009.

Phil Calderbank, director of lettingsearch.co.uk, said: "Margate could become fashionable again, not as a holiday destination for Londoners as it once was but as a second home retreat or a live/work enclave.

"The forthcoming Turner Contemporary won't shake off Margate's past in one swoop but it will take it in the right direction."