The buy-to-let property market is still booming, despite higher interest rates, according to the Royal Institute of Chartered Surveyors (RICS).

Demand for rented property is rising as high property prices are forcing potential home buyers to remain in rented accommodation. The result is that rents are rising at their fastest rate on record. Meanwhile, buy-to-let mortgages have surged over the past three years as investors make the most of rent rises.

Jeremy Leaf, RICS spokesperson, said: “Current economic uncertainty has created an ideal platform for buy-to-let investors to cash in on rising rental levels. Many would-be buyers have decided to wait and see how the interest rate cycle will affect the market.”

Experts have blamed rising house prices and rents on the continuing shortfall in new homes being built and the rapid increase in the UK’s population, largely due to immigration. According to the Association of Rental Lettings Agents (ARLA), rents have now risen to an all-time high as demand outstrips supply in all parts of the market.

The average weekly rent for a flat in prime Central London is now £525pw, with £215pw being charged in the South East and £150pw in the rest of the UK.