A majority of buy-to-let property owners, developers and intermediaries have said that they are confident in the market and plan to take on more properties. Confidence is remaining high due to the combination of increasing numbers of tenants looking to rent, the potential for a fall in interest rates, and the capital appreciation that is expected on buy-to-let properties.

Research carried out by the Association of Residential Letting Agents (ARLA) shows that returns on buy-to-let commercial mortgages stand at 22.4 per cent, while Mortgage Trust has found that most buy-to-let intermediaries expect the market to grow.However, the ARLA has reported revenue falls throughout the sector: seven per cent for houses and five per cent for flats.

Robert Jordan, president of the ARLA, said: “A large proportion of experienced buy-to-let landlords are clearly at odds with some of the commentators.”These real investors in the rental market understand both the long term nature of the investment and its resilience in the face of house price movements.”Mortgage Trust’s monthly buy-to-let intermediary forecast found that 69 per cent of intermediaries expect to do more buy-to-let business in the next three months than they have in the last three, with just one in eight expecting to do less.

Close to half (48 per cent) of this new business is set to come from existing landlords increasing their property portfolios, Mortgage Trust found. A third of the new business is predicted to come from remortgaging existing properties.