An oversupply of residential properties has led to rental yields dropping in recent months, analysts have revealed.

According to the Royal Institution of Chartered Surveyors (Rics), the market was "flooded"with would-be sellers during the third quarter of the year.

Therefore, many landlords across the UK have not been able to command high rents throughout this period.

James Scott-Lee, spokesperson for Rics, commented: "The marketplace has become more and more competitive as many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents where supply has matched demand."

However, he said yields could potentially increase for those who are seen to be providing the right product at the right time.

Mr Scott-Lee added that the lettings sector has witnessed a boom this year, which means many could take advantage of market conditions to secure good returns.

This comes after Savills Private Finance said recent reductions in property values are increasingly being seen as an opportunity to snap up a bargain by prospective buyers.

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