The buy-to-let market accounted for 11.1% of gross mortgage lending last year, up from 9% the previous year. 330,000 buy-to-let mortgages were taken out in 2006, an increase of 48% by volume, according to the Council of Mortgage Lenders (CML).

The strong growth in inward migration in recent years, has fuelled the demand for rentable property and is believed to be the main driver of the buy-to-let mortgage market.

The survey found that 60% of landlords expect to remain in the residential letting market for at least 10 years, showing that most view buy-to-let as a long term investment.

Last year, buy-to-let lending reached an all time high of £94.8bn, up from £73.4bn in 2005. This growth has intensified the lack of supply and forced up prices in many regions of the UK, especially London.

The CML says that predictions for the future are encouraging. They add that an increasing number of young people are making certain ‘lifestyle choices’, including putting off marriage and children until later in life. As a result, younger people are delaying the option of home ownership, and opting to rent instead.