Investors are being drawn into the buy-to-let maket as rental yields increase, according to a property developer.

Countryside properties said that rental yields in the south-east have seen a sharp increase in 2007.

According to the Royal Institute of Chartered Surveyors (Rics), property owners are deciding to rent because they are unable to sell in the current market and are waiting for the credit crunch to pass.

Rics said that the number of people letting a property in the first quarter of this year increased significantly and that rents are still rising.

Robert Coppen, a property investor in the south-east who recently bought a two bedroom development in Kent, said: "I was slightly nervous about buying a property in the current market."

"[But] the figures stack up on rental returns and I strongly believe that the capital investment potential for anyone who buys here is good," he added.

A spokesperson for Rics said that as property sales remain weak, more people are taking advantage of increasing numbers looking for rented accommodation.