With property prices falling, however, there is a way to increase returns on investment. The rental yield of letting out a flat or house is on average between 4-5% across the UK, far higher than the current interest rate of 0.5%.
ARLA operations manager Ian Potter said: "With interest rates so low our members are seeing investors tempted back to the buy-to-let market as rental yields offer a greater return than the banks.
"With financial markets in crisis, it’s clear that bricks and mortar are a safer bet than stocks and shares. Buy-to-let remains a solid investment, particularly if you’re looking to commit for the long term and not out just speculatively investing or looking for quick capital uplift.
"Potential investor landlords should be heartened by these figures but I would advise that they conduct extensive research on prospective properties in order to achieve the highest return.
"Anyone seeking further help and advice should get in touch with a regulated ARLA agent to maximise their investment.”
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