Demand for rented property continues to rise, though at a slower pace, according to a recent letting survey conducted by the Royal Institution for Chartered Surveyors (RICS).

The last quarter saw tenant demand at its lowest for nearly two and a half years, amid more stable conditions in the UK housing market. A total of 13% more chartered surveyors reported a rise in demand, down from 23% in the previous quarter.

Rents have also risen for the third consecutive quarter, with 17% of surveyors predicting that they will rise further over the next quarter. However rental returns are still expected to fall behind mortgage costs.

Jeremy Leaf, RICS spokesperson, says: "It looks like any signs of panic in the housing market are largely over, bringing stability to the lettings market. However, many people may still be wary of buying in the current climate - which bodes well for the rental market."