ALTHOUGH speculation in the media suggests that investors are backing sharply out of housing, the actual evidence is that landlords are taking the opportunity to exploit lower prices and a glut of property on the market to make further purchases.

The latest ARLA Review and Index of Returns makes the trend clear. It says that the average size of buy-to-let portfolios has risen from 4.9 to 5.7 properties so far this year. In the summer of 2004, the average portfolio size was 4.1 properties.

Tenants are also staying put longer: an astonishing 97 per cent of landlords report that although the majority of tenancies agreed are for an average initial period of just over nine months, most tenants stay on for 17 months.

On the question of capital appreciation or rental income, landlords are split: 47 per cent want both, while 44 per cent look for capital growth – but 20 years down the line.