The lack of properties to rent in the region is worsening, according to residential letting agencies.

"We have seen a marked increase in the residential rental market over the last few months with more tenants wanting properties to rent than we can currently supply and we need more good quality, well located homes of all types to satisfy this growing demand," said Jill Elkington, East Midlands spokesperson for the Association of Residential Lettings Agents (ARLA).and residential letting manager at Hodgson Elkington LLP, the Lincoln-based chartered surveyors.

"Based on research out today almost three quarters of ARLA member offices say that there are more tenants than available properties. This is an increase from 59 per cent last quarter and 24 per cent in September 2009," said Jill Elkington.

"The spring period would usually see a rise in rental properties coming onto the market, and although there is some evidence of landlords considering selling up, it is not enough to counteract the change in supply.

"This situation has been deteriorating rapidly in recent months, as the supply and demand of homes to buy is also swinging out of kilter - making the prospect of a severe rental housing shortage ever more likely."

"In his Budget, the Chancellor did little to incentivise investment in the Private Rented Sector - in fact, the rise in Capital Gains Tax may actually discourage potential landlords from investing. This, combined with low construction levels and the cap on housing benefits, means that instead of the housing market getting back on its feet, what we may soon see is people going without homes they can afford - something that simply should not be allowed to happen," said Jill Elkington.