Demand for homes in the UK rental sector is continuing to rise as home buyer activity drops off, according to surveyors.

This is contributing to an upward pressure on rental prices, at a time when house prices have been falling month-on-month, the findings from the Royal Institution of Chartered Surveyors indicate. A net balance of 35% of property professionals saw a pick-up in rental demand in November, while a balance of 27% reported a decline in landlord instructions.

The mismatch between demand and supply continues to drive rents higher, with a net balance of 43% of contributors anticipating rental prices moving higher over the coming three months.