People are giving up on selling their home as prices fall and credit dries up, surveyors have indicated.
Many mortgage holders who recently put their homes on the market have now given up on trying to sell during the downturn - and are renting their homes out instead.
According to figures from the Royal Institution of Chartered Surveyors (Rics), 43 percent more members reported a rise in the number of people asking to become landlords than those who reported a fall over the three months to July. This total stood at 35 percent over the first three months of the year.
Moreover, houses were rising in popularity in the rental sector faster than flats - a sure sign that family homes once intended for sale are now being put out to rent. While 34 percent more surveyors reported an increase, rather than a fall, in flat demand, this figure went up to 43 percent for houses.
James Scott-Lee at Rics explained: "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."
Home sales numbers have dropped by around 50 percent over the past year, figures from lenders have shown. This is due to the general financial downturn, and, specifically, the limited availability of home loans from many mortgage firms in the credit crunch.
