INVESTORS are buying York properties in the hope of renting them at a big profit during Royal Ascot week, it has been claimed.

Landlords and homeowners have been quick out of the starting stalls to place an interest in new city housing developments in a bid to cash in on punters looking for accommodation in June, a city estate agent says.

However chamber of commerce chiefs today said they thought promises of vast rewards for playing the Ascot property game were "unrealistic".

And a website set up to advertise residents' homes for rent - called ascot-lets - has only done a handful of deals to date.

Property agent Knight Frank said it was reporting "strong interest" in a number of the city's new residential developments which should be ready in time for festival week.

Agents are predicting that, as York's hotels could be full to capacity, investors will turn to the rental market and scour properties within walking distance of the course.

These could attract premium rates during Royal Ascot, when more than 50,000 spectators are expected through the turnstiles every day.

Agents believe:

A week's rent at one of Bryant Homes' new apartments in Centurion Square, near Ouse Bridge, could be £6,000 in Royal Ascot week. The properties are expected to sell for between £140,000 to £250,000

Rents at the 14-home Shelley Apartments, in Acomb, could also reach as much as £6,000 - compared with just £700 a month normally

The Lawrence Street Barratt mews cottages could fetch between £5,000 and £7,000 for a week's stay.

Jo Pearson, investment sales manager for Knight Frank, said: "These are for people who want to buy to let and investors would be particularly attracted by the premium rate on that week in York. Accommodation will be in high demand and the market will be at all sorts of rate."

Anne Haggas, also of Knight Frank, said, "Royal Ascot in York has given a huge boost to the city's rental sector. Investors see a value to buying now to benefit from Ascot Week in the short term.

"But these schemes, with their location in York and the desirability of the city means they will also be a good investment for the future."

Last November, Andrew Lindsay, president of York and North Yorkshire Chamber of Commerce, warned that homeowners' dreams of making a mint out of Ascot were unrealistic.

Internet property website ascot-lets.com has still to negotiate another deal since then.

But John Burke, lettings manager at the company, said the organisation was now beginning to receive dozens of inquiries from interested people.

"We are now hearing from people who have budgets of up to £300 per person, per night," he said.

Updated: 08:39 Wednesday, February 16, 2005