LONDON (AP) — Demand for rental homes in Britain grew in the second quarter at the fastest rate in at least a decade as falling property prices and disappearing mortgage deals deterred potential home buyers, the Royal Institution of Chartered Surveyors said yesterday.

During the three months ending in July, the institution said a survey of residential lettings revealed the largest increase in the number of properties landlords had put up to rent since the study was first carried out 10 years ago.

In total, 37 percent more real-estate brokers reported a rise in the number of completed rental deals than reported a fall, the London-based industry group said.

Would-be buyers are being put off by the fear that the housing market will suffer further price drops in the coming months. That leaves many in rental housing while they wait to buy. The average asking price for homes has already fallen by nearly five percent in the last year, according to data published on Monday by Rightmove, the country's largest property website.

But even those still interested in buying often can't in the current market. Tightening lending criteria resulting from the credit crunch has led to a massive decrease in the number of mortgages available, making it impossible for many buyers to get a mortgage at all.

While demand for rental properties has skyrocketed, the number of properties available for rental has also increased dramatically.