With repossessions on the up and growing number of homeowners falling behind with mortgage repayments, buy-to-let investors are making the most of others’ misfortune but they should be cautious.

Cath Hearnden, director of My Mortgage Direct, said: “Following the recent interest rate rises, we have seen an increase in enquiries from purchasers of investment properties being offloaded by owners who can no longer afford to keep them.

“Buy-to-let as a money-making scheme has certainly overstretched itself since the beginning of the millennium and some people are having to accept a loss on what they hoped would be a nest egg for their future.”

During the height of the buy-to-let boom around three years ago, new builds were selling for over-inflated prices and that has proved to be the undoing of some investors. Thanks to rising interest rates, the closing gap between mortgage repayments and achievable rent has put added pressure on investors.

Hearnden said: “There is still mileage in property investment but not for anyone and everyone. With analysts predicting a surge in mortgage arrears and bad debts associated with mortgages, becoming a landlord will not be quite as easy as it has been in the past.”