Reports by mortgage lenders and surveyors suggest that rising interest rates, property market uncertainty and a squeeze on credit lending are deterring small investors from the buy-to-let market. Investors are reportedly now favouring cash over bricks and mortar.

The buy-to-let market has been under increasing strain in the past year. Interest rates have risen, while rents have until recently been stagnant. Yields have fallen to an average of about 5 per cent and in some cases have fallen below mortgage interest rates.