Investment Prospects

So, are there any reasons to be optimistic about buy-to-let, particularly for those considering entering the market? Neil Young, CEO of Young Group, a property management company, says: "Mark Twain famously said 'Reports of my death have been greatly exaggerated'; the same can be said of the buy-to-let industry. The Young Index data shows that investor sentiment remains extremely healthy, particularly in London and in areas where regeneration and investment in infrastructure is expected to generate positive long term growth."

Demand for rental properties continues to be fuelled by demographic changes that are country-wide: the increasing number of single households and the net positive immigration into the UK- in large due to the recent influx of economic migrants from  Eastern Europe.

Scrutinise each investment opportunity

"As with any investment asset class, it's imperative to scrutinise each opportunity carefully and ensure that it is supported by sound fundamentals. In the case of buy-to-let, investors need to ensure that the balance between property supply and demand is in their favour. The Young Index figures show that confidence in the London market outstrips the rest of the UK, which is a consequence of the continued undersupply of property in the capital and London's dominant position as the world's leading centre for global business and finance."

The company's Index, based on a poll of 500 active investors who hold UK investment property, found:

• 82% of investors believe property values in London will rise or remain static over the next 12 months
• 37% of investors believe UK property values outside of London will rise or remain static over the next 12 months
• 95% of investors expect the Base Rate to be below 5.75% at the end of 2008
• 93% of investors intend to hold their property investments for at least the next 12 months.