The demand for rented properties remains strong as rising mortgage bills and calls for larger deposits put many buyers off, a report has claimed.

The Association of Residential Lettings Agents (Arla) said that 39% more agents reported that demand had outstripped supply in the last three months.

The Arla research, based on responses from 444 letting agents, showed a fall in the average length of time that a property remained empty between tenants, dropping from 24 days to 22 during the last three months.

It also found that 77% of landlords said they were not planning to either buy or sell properties in the near future.