The recent trend of buying properties to let is showing no signs of letting up, despite more signs that rental income is falling.

It is now very firmly a tenants' market - if you are looking to rent, now is as good a time as any

Ray Barrowdale, Rics spokesman

The latest study by the Royal Institution of Chartered Surveyors (Rics) found that its members saw another wave of such 'buy-to-let' properties coming onto the market for rental during the three months to July.

But it also said rents had fallen for the second quarter in a row.

Some landlords were finding it increasingly hard to find tenants, and some had decided to sell up and leave the market altogether.

It said the buy-to-let market, which has attracted thousands of amateur landlords over the last few years, remained "sound", but the number of new landlords had pushed down rents.

Good time to rent

The popularity of buy-to-let mortgages has taken off in recent years, as investors have decided putting money into bricks and mortar is a safer bet than the volatile stock market.

Rics said the number of such properties was continuing to rise.

A net 37% of surveyors saw a rise in new instructions in the three months to July, against a net 46% in the previous quarter.

But the increasing supply of available properties has put tenants in a strong position, as landlords battle to rent their properties out.

Rics said that rents had fallen for the second quarter in a row, with the average monthly rent now �660.

But there are wide regional variations - in Wales a two-bedroom flat is likely to cost �332 a month, while in London it would cost �1,517 a month.

"It is now very firmly a tenants' market," said Rics spokesman Ray Barrowdale.

"If you are looking to rent, now is as good a time as any."