Speculative investors are buying up properties in York with the intention of letting them out for at a high premium rate during Royal Ascot week. New city housing developments are proving immensely popular amongst investors, who hope to be able to let them out for as much as £6000 during Ascot week (June), according to local reports.

Local estate agents predict that Yorks hotels could soon be fully booked. Therefore with more than 50,000 spectators expected to attend the event each day, some visitors will be looking to the rental market for properties that are within walking distance of the course and available on a short-let of one week.

Jo Pearson, investment sales manager for Knight Frank, said: "Some buy to let investors are particularly attracted by the premium rate achievable during Ascot week. Accommodation will be in high demand and available at all sorts of rates."

However last November, Andrew Lindsay, president of York and North Yorkshire Chamber of Commerce, warned that homeowners hoping to benefit financially from Ascot were unrealistic.