Britain ’s buy-to-let market could be the counter-balance to the negativity currently facing the rest of the property market, according to Jeremy Law of Bradford and Bingley.

Although inexperienced buy-to-let investors have discovered the pitfalls of the industry, especially with the oversupply of new build flats in many towns and cities. Those investors who have been in the buy-to-let market over a number of years are expected to weather the storm and, in some cases, continue to increase their portfolio.

The driving factors behind the rental market will remain, added to an increase in the number of first–time-buyers who are unable to get on the property ladder due to the credit crunch. Demand in the rental market could therefore remain high, which could also lead to an increase in rents as competition for rental properties rises. Buy-to-let investors will still face the challenge of rising mortgage rates, although if their yields can be increased they can pass the costs directly on to the tenants.

Jeremy Law, head of buy-to-let at Bradford and Bingley, told PIN: “The information gained from the last ‘Buy-to-Let Confidence Study’ confirms that investors are as confident as before and are looking as much as ever to increase their portfolio. Investors are seeing the current environment as a good opportunity, especially as house prices soften.”

When asked about the availability of mortgage products for the buy-to-let investor, Law told PIN: “The main buy-to-let players are still lending. Even though there are less products available, portfolio investors are still making the market work.”