New research conducted by Nationwides specialist subsidiary, UCB Home Loans, indicates that 55% of mortgage brokers expect the number of buy-to-let purchases to fall this year compared with 2004. If correct, it will be the first time in the sectors history (eight years) in which the number of buy-to-let mortgages has fallen.

UCB Home Loans Managing Director, Keith Astill said: "Predictions for the year as a whole are that the massive influx of new investors into this sector has now passed its peak."