The average UK landlord saw rental yields increase in the final quarter of 2007.

That is according to the latest Lettings Survey from the Royal Institution of Chartered Surveyors (Rics).

The survey also highlighted that demand for rented accommodation picked up in that time, with 16 per cent more chartered surveyors reporting a rise rather than a fall in demand.

Further to this, landlord confidence appeared to rise, with only 4.6 per cent saying that they would sell their properties once the current tenant leases expire, compared to 6.5 per cent in the third quarter of 2007.

Commenting on the survey''s findings, Rics spokesman Barry Hall said that the UK buy-to-let market appears to be in good health.

"While banks remain cautious about offering loans, demand for rental property will continue to increase with many would-be-buyers unable to make the jump to home ownership," he explained.

"Established investors continue to reap the benefits of the current uncertainty in the housing market and have been enjoying the fruits of rising rents," continued Mr Hall.