Fitch Ratings highlighted the danger of the buy-to-let market at its Global Non-Conforming Mortgage Backed Securities Conference in London.

Matthew Taylor, senior director at Fitch, said the dangers of lending to the buy-to-let market were less apparent than those of the sub-prime realm. However the regional concentration of buy-to-let loans and potential implications of amateur investors made for a risky proposition.

Fitch Research revealed a high regional concentration of buy-to-let loans which it said left such areas vulnerable if a recession occurred, resulting in mass selling.

For example, London and the South East account for nearly 35% of all buy-to-let properties in the UK. If a sell off were to take place the value of properties in the region could plummet exacerbating existing house price issues and further affecting confidence and market deterioration.