Staff at Clear Property Investment this week confirm their statistics are in line with a national trend which shows tenant demand for property continues to increase.

The latest report from the Royal Institution of Chartered Surveyors (RICS) predict the figures - which show an increase for the second consequtive quarter - will push rents up.

Around 26 per cent of RICS members report increased demand, particularly for property in London and the East of England. The figure for Scotland was seven per cent. This is in stark contrast to around the same period last year where surveyors expected rents to decrease due to over-supply.

The current trend is set to continue with many RICS members expecting rents to continue to increase over the next quarter.

Sarah Speirs, deputy director, RICS Scotland, is not convinced however. She believes the availability of rental properties may grow.

"The latest RICS Housing Market Survey shows a lack of demand from buyers, but increasing numbers of properties for sale," she said. "If this trend continues we may see the return of the accidental landlord (more owners opting to let than to sell) and some moderation to the recent rental recovery."

Increased rents are a result of lack of properties on the market (although this is starting to turn around), and tough criteria by lenders when it comes to securing buy-to-let mortgages. This is coupled with economic uncertainty. Figures show the rent for houses has increased more than for flatted property where 22 per cent of surveyors reported a rise in the number of tenant lets.

Ms Speirs' colleague, James Scott-Lee added: "Supply of lettings property continued to fall in the three months to July although at the slowest pace in a year. Existing landlords keen to expand their portfolio may still be struggling to access the necessary finance despite improved market conditions.

A break-down of the tenant picture shows private individuals took up the vast majority of lets (73 per cent), while companies fell back to seven per cent. The number of properties let to students increased by one per cent to seven per cent and social tenants made up 11 per cent of the market.

In terms of landlords, 70 per cent of new instructions to surveyors were from private landlords, those of property companies dropped from 13 to 11 per cent and instructions from financial institutions grew to 13 per cent.

Looking at the picture in Scotland itself, Fraser Crichton of Dove, Davies & Partners in Edinburgh reported a particular demand for family properties and said the majority of landlords were refusing to sell because of uncertainty in the sales market.

Paul Letley of J & E Shepherd in Dundee meanwhile reported a "steady stream" of owner occupiers trying to sell their properties - without success.

"There have been landlords who have asked for vacant possession so that they can attempt to sell," he said.

For further clarity - or information - on the latest RICS report and what it means for both tenants and landlords, contact any of our Clear Property Investment team.

View other news from September 2010