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Lease commencements were up by more than three quarters in July this year compared to July 2007 as thousands of would-be house buyers scrapped plans to get on the property ladder.

On a month-by-month basis, tenant demand is also rising with the number of leases commencing in July this year up 18 per cent from June.

According to Your Move, landlords have experienced the strongest demand from tenants for decades, as property purchases slide and the ongoing mortgage drought prevents people from buying.

Managing director of Your Move David Newnes said: "Demand for rented accommodation has exploded – July’s massive uplift is the biggest this year.

"Normally summer sees a natural slowdown as people holiday rather than move home but this year is bucking that trend."

The total number of leases commencing in January to July 2008 was up 41 per cent on the same period in 2007.

Newnes added: "The huge boost in demand for rented accommodation is being supported by the large number of properties coming onto the lettings market.

"A lot of sellers won’t accept depressed prices – instead they’re taking advantage of booming demand for rented accommodation and putting their homes up for rent instead."