Research from Paragon indicated that just five per cent of landlords thought that tenant demand would decline.

"We have consistently said that buy-to-let has strong counter-cyclical qualities and we are now seeing concrete evidence of this.

John Heron, managing director of Paragon Mortgages said that potential homebuyers could be postponing decisions because they felt uneasy about market situations.

He said that increased demand for tenancy agreements from students and immigrants, as well as people who rent as a lifestyle choice, is putting pressure on the private rented sector.

As a result, Mr Heron expects yields to rise as demand grows.

Ajay Ahuja, author of the bestselling book, Buy-to-Let Bible, and buy-to-let property millionaire believes that it could not be a better time  for buy-to-let investors to purchase rental properties.

He says: "The only people left buying properties at the moment are the professional investors. We don't care about whether national house prices are going down or up, all we care about is yield.

"We know that we're the only buyers, hence it's a buyer's market. This means we can drive harder bargains since there are less buyers.

"This credit crunch hype is going to make buy-to-let investors a large amount of money."

He also has found that rents are rising and he can charge more for his buy-to-let properties: "I knew it would be a good year for investing, but I never knew it would be a good year for renting until now. 

"Rents are rapidly increasing. Prospective first-time buyers are renting, EU immigrants are flooding in and housing is in short supply."

Find out more about making money through property during the credit crunch with Ajay's article "Buy-to-let landlords: how to make a profit from the credit crunch".

Find out more about making money through buy-to-let in a recession with Ajay's article "Why you can still make money from buy-to-let in a recession".

More information
Make a tenancy agreement with Lawpack's 'Residential Lettings Kit'
Download tenancy agreements now
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Resilient buy-to-let may soften housing downturn
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Top ten tips to profitable property
Have you given a Tenancy Deposit Protection Form to your tenant?
Buy Ajay's guide, 'Buy-to-Let Bible'
Buy Ajay's guide, 'The Seven Pillars of Buy-to-Let Wisdom'
Learn all about your legal responsibilities as a landlord with Lawpack's guide 'The Complete Guide to Residential Letting'