Over the last few years the craze for buy-to-let mortgages took over the property market. Are you thinking of buying a home? UK Net Guide's Online Mortgage Search can help find a mortgage suited to you.

Many investors saw homes providing a quick buck as they bought, got tenants to effectively pay the mortgage and sold up after a couple of years, pocketing the profits from house price rises.

However, the last year has seen three interest rate rises knock house price growth back down, so many investors are starting to wonder if the buy-to-let gravy train is worth hopping onto at all. While others are starting to look further afield for house price growth that can make an investment pay in the short term.

Research from Paragon Mortgages reveals that activity among residential property investors continues to be strong, with landlords adding to their portfolios.

The study reveals that interest rate rises are not turning investors away from the market, as tenant demand remains strong.

Nigel Terrington, chief executive of Paragon, says: "Suggestions that buy-to-let activity is influenced by fluctuations in interest rates - with business going up when rates fall and going down when rates rise - is unfounded.

"Landlords take a long-term perspective on the market, with a typical portfolio investment horizon of 16 years. Their investment decisions are not based on the short-term signals of fluctuating interest rates but on the underlying trends of supply and demand in the market place."

He added: "The experienced investor understands that demand for privately rented accommodation is underpinned by the long-term growth in the number of households needed in the UK."

Meanwhile, Malcolm Harrison, spokesperson for the Association of Residential Lettings Agents (ARLA) claims London is a buoyant market for buy-to-let investors.

He said: "Yields don't look as flavoursome, but that is caused by the capital appreciation. When you've got house prices romping away the rents don't actually go up with them, so the yield seems like it's dropping.

"But, on the assumption you've done your sums correctly right at the beginning, you [can] cover your costs, you might be making a profit on the rental income, [and] you're certainly making some capital appreciation."

He went on to explain that tenant demand is strong in London.

"There's a tremendous amount of economic activity going on so there are all kinds of reasons for people to come to London. And London has always had more rental than other parts of the country, because it's the capital."

For those looking for further capital appreciation than is possible in London or the UK, many buy-to-let landlords are looking abroad.

Recent research from Assetz Property shows that Poland has created a 165 per cent return on cash investment. The growth of the European Union has made buying property in countries previously closed of - such as Bulgaria and Romania - much easier. However, some investors are looking even further to Brazil, Cape Verde or even Goa in India.

The over-riding consensus in the buy-to-let industry is that investors should look to the long-term to make gains and for areas they know best. While double digit house price growth may have waned in the UK, by looking to the longer-term gains, investments can offer good returns.

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