The National Landlords Association (NLA) has announced that contrary to recent reports the fundamentals behind the UK buy-to-let market remain strong.

The association points to Paragon Mortgage’s recent Buy-to-Let Index for April which saw the average annual rental income rise to £12,048, a 13.8% rise from that recorded in April 2007. The NLA describes the buy-to-let market as being ‘counter-cyclical’. As the credit crunch continues and an increasing number of would be first-time buyers are forced to remain in the private rented market, this leads to an increase in demand and therefore an increase in rents. They believe that for a professional landlord the current market conditions should be seen as an opportunity to expand their portfolio.

Simon Gordon, head of communications for the NLA, told PIN: “The buy-to-let market has not been immune to the credit crunch and some inexperienced landlords have been caught out as a result, leading to a negative reaction in parts of the media. However we believe that the sector remains strong and most professional portfolio landlords are doing well. Rents are rising in many parts of the UK due to a number of factors. It would be unfair to say that UK landlords are taking advantage of the current market conditions or profiteering but they are simply covering rising costs and responding to increased demand.”