Confidence levels are high in the buy-to-let market as the majority of landlords feeling optimistic about the year ahead, a new survey reveals.

Almost four out of five landlords say they feel either the same or more positive about investing in the buy-to-let market, according to Bradford and Bingley.

Some 91 per cent of those surveyed say that rent levels stayed the same in 2005 or increased with around half subsequently earning more than £15,000 a year.

Over half of investors have a terraced house in their property portfolio with a further 48 per cent owning a two bedroom flat.

The south-east remains the favourite spot for buy-to-let properties with 53 per cent of landlords owning houses or flats in the region. This trend is set to continue with a third of those surveyed planning to increase their portfolio in the area.

Andrew Moss, Mortgage Express buy-to-let product manager, commented: ‘This comprehensive study demonstrates the high level of confidence in the buy-to-let market at the start of 2006, with over half the landlords surveyed viewing investment in bricks and mortar as a good way of preparing for their retirement.”

Figures from the Office of the Deputy Prime Minister predict that the buy-to-let market will see a three per cent rise over the course of the next ten years with more young people taking longer to get onto the property ladder.

Just over half of the landlords surveyed claimed they were investing in the buy-to-let market for their pensions.