Investors with buy-to-let mortgages are still involved in an industry which represents a solid investment, according to Birmingham Midshires.

The lender made the statement while revealing the results of a landlord survey which showed that most landlords prefer to be hands-on in the management of their property rather than carrying out the task via a third-party agent.

Tim Hague, director of mortgages at Birmingham Midshires, said: “With landlords enjoying an average return of 16.3% in 2007, buy-to-let remains a sound long-term investment. We expect firm demand to continue throughout 2008 and beyond.”

He also advised landlords that with so much rented accommodation around landlords could be choosier about their tenants and avoid problem ones more easily, a process he said organisations such as the National Landlords Association could help with.