The truth about buy to let finance and investment is laid bare in a new report from the Association of Residential Letting Agents (ARLA).

The research provides invaluable insight into the buy to let market and the latest report reveals that the North East is currently the UK’s property hotspot, with the Midlands then London in second and third place respectively.

Landlord confidence has recently been boosted by a number of new mortgage providers entering the buy to let market, along with decreasing house prices.

One third of the landlords surveyed in London said that they are likely to purchase more property to let in the next year, while 30% of Midlands landlords agreed with this sentiment.

However, in the South West, 18% of landlords invested in new properties in the last year, while 10% sold – the highest figure for any of the UK regions.

ARLA’s operations manager Ian Potter said: “Traditionally London has led the way with buy-to-let, but we are seeing signs that investors elsewhere in the country believe now is the time to buy – if you can arrange finance, it could be prudent to take advantage of lower property prices.”

The latest report also reveals how landlords in the North have the largest portfolios, with an average 13 properties, compared with an average of six per investor in London and the South East.

Potter believes that high student populations and areas targeted for future growth can heavily influence a town’s suitability for profitable property investment, adding:

“While it is a positive sign that landlords are continuing to buy rental properties, this individual activity needs to be boosted by larger-scale investment. With demand still far outstripping supply, and home ownership out of reach for many, it is critical that more people have access to a home of their choice.”

Click here to download a free copy of the latest ARLA report.