The number of investors buying retail property increased during the third quarter of 2006, the end of September, despite the fact that demand from retailers for new shop floor space fell for a ninth straight quarter, according to a new report.

The Royal Institute of Chartered Surveyors (RICS) reveal that 28% more surveyors reported a rise in retail property sales than a fall, up from 25% during the previous quarter. However, 9% more respondents reported a fall rather than a rise in demand for new retail space.

RICS economist Oliver Gilmartin said: "Buyers of shops are confident that interest rate rises will not dampen consumer spending, with some signs that the fall in retailer demand for shops has bottomed out."