The UK residential rental market remained strong during the third quarter of 2006, according to a new quarterly letting survey.

The National Association of Estate Agents (NAEA) reveal that increasing property prices combined with an influx of Eastern European immigrants has continued to fuel the rental market.

NAEA reports the time it takes to let a property has fallen over the last quarter to an average of 12.2 days, down from an average of 13.2 in the first quarter and 13 in the second.

The third quarter is traditionally the busiest time for lettings agents with many people aiming to occupy new homes before the start of the school year and many students returning to their studies. July and August were steady with the average reported at 12.6 days, pace increased in September with an average of 11.6 days.

The report also suggests that rents increased by an average of 1.45% per month in the third quarter.

Jan Bartlett, letting expert at the National Association of Estate Agents said: "The lettings market has seen many significant changes in the last twelve months. The introduction of licensing of houses of multiple occupation, tenancy deposit schemes and the housing health and safety rating system, have and will have significant impacts upon the market.

On the whole the sector is performing well with many agents reporting significant improvements in business. The mass influx of Eastern European immigrants has boosted the market and of course, the ever increasing average age of the first time buyer has assisted in an increase of buy to let investments."