According to Moneygate, the credit crunch is likely to benefit rather than hinder buy-to-let investors as first-time buyers find it harder to get onto the property ladder.

Citing figures from MoneyExpert.com showing that the number of mortgage application rejections has increased by 60% over the past six months, the broker has said that buy-to-let landlords represent a lower risk for brokers.

Moneygate believes that as a result, the sector is set for a prosperous 2008 even if the wider property market will see reduced growth levels.

Dennis Reed from Moneygate said: “In general, the rate of arrears and repossessions for buy-to-let investors is much lower than for residential on account of the income they can generate.

“Also, experienced landlords tend to be older and have greater income as well as an asset –base, which the average residential buyer does not. Despite predictions of doom and gloom in the property market, the buy-to-let market looks set to continue bucking the trend with predictions of up to 15% growth over the next year.”