Landlords and letting agents can look forward to another bumper year, according to nationwide tenant referencing firm Landlord Assist.

The continuation of low interest rates and the gradual easing of lending restrictions by financial institutions have seen many buy-to-let investors return to the marketplace to expand their portfolios.

Landlords are not only obtaining their finance at a competitive rate but, in most cases, are buying at a significant discount to the 2007 peak and as a result they can now enjoy a positive income stream, capital growth and see inflation erode the value of their mortgage debt over a period of time.

Graham Kinnear, Managing Director at Landlord Assist, said: “There are few tangible investments at present which can offer growth, income and a positive hedge against inflation quite like the buy-to-let market. Investors have taken advantage of weaker buying prices and strong rental returns over the past year, and with the base rate unlikely to increase anytime soon, the good news for landlords is that they can enjoy the favourable conditions for sometime yet.”

Demand for private rented properties is set to remain strong for the foreseeable future as more and more people are now choosing to rent than ever before. This trend has been caused by a lack of mortgage availability for homebuyers in the residential mortgage sector and the difficulty for would-be buyers to raise large deposits imposed by lenders.

Subsequently many tenants are renting for longer periods than they initially envisaged, thereby providing landlords with greater security.