Property owners are turning to letting their properties instead of selling, according to the letting agency Leaders, who has recently seen an influx of new landlords deciding to let their property after months of trying, unsuccessfully, to sell.

The agency said this was good news for tenants across Sussex, Surrey and Hampshire as it has resulted in an excellent selection of properties on offer – from studio flats and luxury apartments to five bedroom houses, and everything in between.

Leaders’ joint managing director, Paul Weller said: "Letting is a good alternative for people who are unable to sell in the current market and need to move on. It enables them to wait until the market improves whilst at the same time enjoying an income from their property."

"We are seeing a very high demand for rental accommodation in all the areas in which we operate and as a result are able to let most properties - provided they are in good condition and well presented - very quickly indeed."

During August Leaders branches across Sussex, Surrey and Hampshire exceeded the company’s overall forecast by a generous margin and let almost 25% more properties than in August 2004.

Mr Weller added, "More and more young people are putting off buying and are choosing to rent instead, partly because of high house prices, but also because they prefer the flexibility of renting; not being committed to a mortgage and all the responsibilities of home ownership. This has contributed to a slower sales market, which in turn has encouraged property owners to let rather than sell – all of which means we are seeing a very healthy lettings market at the moment."

It would appear that vendors struggling to sell their homes have little to lose by coming off the market and letting their property for 6 months or a year instead. With new buyers thin on the ground, rental income may well match any reduction in house prices, which, according to the latest figures from Hometrack, fell 0.1% across the UK last month and 0.4% in West Sussex, Surrey and Hampshire. Whilst well presented properties are letting fast in the current market, it now takes nearly two months on average to sell a house in the UK compared with 5 weeks in August 2004.

"Many of our new landlords viewed letting as a way for them to escape the frustrations of trying to sell in a buyer’s market," explains Mr Weller. "They simply got fed up of having to be constantly prepared for viewings which then resulted in either no or low offers; and worse, of sales that fell though at the last minute causing huge disappointment. For them, letting has proved an excellent solution, as they can now move on and are getting an income from their property at the same time."