Managing director David Austin also remains positive about property price growth, estimating overall growth to come in at 3 per cent for the year.
Rental yields have also been predicted to increase in line with demand, with hotspot areas emerging in the M4 corridor of Reading, Swindon and Bristol, as well as key growth in Southampton's university population driving invesments and regeneration efforts pushing landlords to look to Middlesborough.
“The buy-to-let market has had a strong year," continued Austin. "However, activity levels among serious investors will continue to be high throughout 2008, particularly as better investment opportunities re-emerge and buyers focus on the solid longer term returns of bricks and mortar.
"Demand for properties will be as strong as ever, buoyed by the growing demand from students, immigrants and those who prefer to rent as a lifestyle choice. With the private rented sector also increasingly taking up the slack on social housing, the future of the sector looks bright."