In the first quarter of 2008, there has been a rise in the number of new landlord instructions by 29 per cent, according to the Royal Institution of Chartered Surveyors (RICS).

The organisation surmises that a significant drop in demand in the "to buy" market has pushed people into the rental sector.

And many homeowners are taking advantage of rising numbers of people looking for rented properties while they wait for the effect of the credit crunch to abate.

Significantly, demand for family homes and flats increased over this period, as many would-be buyers found themselves unable to step on to the property ladder.

RICS spokesman Barry Hall said: "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.

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

And this is reflected in Northampton, across the market.

Jane Hayward, of the lettings department at Carter Jonas at The Lakes, said: "Over the last four to five months, the lettings market has been fairly buoyant.

If people have sold, they are tending to go into rented accommodation to see what the market is doing. They see if they can get a bargain by waiting.

"That was never done five years ago.

People would sell their house and move into another house straight away.

People have got more savvy and will sit on collateral and wait."

Andrea Fletcher, the manager of the Ashby Lowery lettings agency in the centre of Northampton, said staff were noticing different patterns in the market and demand was steady.

She said: "We have 1,200 properties, so we are always really busy.

But we are finding the supply is increasing a bit.

People who are trying to sell, who would have sold before, are now putting their houses on the market to rent.

That hasn't happened before and is increasing our supply.

"Tenants are also renewing contracts and do seem to be staying for longer. People are not moving out of rental like they were."

The Haus lettings agency in The Mounts has seen a sharper change over the last year and has taken on almost twice as many properties.

Owner Kawser Ahmed said there were definitely more people looking for rented accommodation and demand was pushing up prices, but there was also a lot more houses becoming available to rent.

He said it was, however, still far cheaper to rent than to pay a mortgage, if people could even secure one.

Mr Ahmed added: "A mortgage on a three-bed house could be £700 to £800 a month and the rent would be £650. It is a massive difference.

"People are moving back into rental and I think it will continue for the next 18 months. People are scared more than anything."

According to Mr Ahmed, in some cases property owners are finding that, when they come to the end of a fixed-rate mortgage, they no longer have enough equity to remortgage their property and are having to sell up and move into a rented home.

But what about the buy-to-let market, which some experts say is suffering due to uncertainties surrounding mortgages and a saturation of flats on the market.

Mr Ahmed said he believed those with equity would still be in a good position, but it was a difficult market for new landlords.

"People with a lot of equity will find it easier to buy property, as they will already have a portfolio of houses," he said.

Mr Hall agreed: "New investors are struggling to get the necessary finance to enjoy this buoyant sector."

And for 23-year-old Northampton newcomer Callum Jones, renting is the only way to go at the moment.

Despite completing a post graduate course three years ago and working ever since, he believes he is still at least four years away from getting on to the property ladder.

But a booming lettings market means that the price of rent is going up and he is only able to afford a shared property, rather than renting alone.

Callum recently moved into a property close to Northampton town centre, to share with two strangers, after briefly renting a room in a friend's house.

"I can't even afford to rent my own flat.

It is £375 for an unfurnished flat, which is basically just a room.

You have to pay bills after that and buy furniture, so you are looking at £600 a month.

"I found a furnished, shared house for £400 a month, including bills, and it is really nice. But it is still expensive to rent, so it is difficult to save up money for a deposit to buy a house.

"No-one can do it without help from parents, or by moving in with a friend."

Hope for first-time buyers
"I would need a significant pay rise to afford a property in the present climate."

That is the conclusion of 27-year-old Mike Scullion, a finance recruitment consultant who rents a room in Abington in a house owned by a friend.

The pair previously rented a flat together.

His friend was able to buy the house due to financial help from his parents, but Mike said he was not in a position to do the same thing.

He said: "I've been renting for around the past 18 months.

I'm still renting, as I wouldn't be able to afford the massive deposit to buy a house at this time.

"Also, I think it's a bit of a risk to buy at the moment, with the housing market looking a bit uncertain.

"I think it's becoming increasingly difficult for first-time buyers to get on to the housing ladder.

"In the present climate, I wouldn't be able to afford to buy a house and would need a significant pay rise in order for this to change in the near future."

Getting on the housing ladder could take time, meaning Mike could stay in rented accommodation for a few more years.

He added: "I think I will buy my own home eventually, but this could take some time with the market the way it is now.

"I am going to start to save for a deposit in the near future and see how the market goes in the next two to three years.

"It could become much more affordable for first time buyers if prices keep falling at the rate they are at the moment."