Scotland’s buy to let sector continues to defy the UK-wide property market slump.

The National Landlord’s Association (NLA) said buy to let investors would do well to invest in its “excellent” market.

Rising yields, increased demand and a stable property market were all cited as key factors.

According to David Kendall, regional representative for Scotland for the NLA, there were many benefits to investing in Scotland.

"Basically, from a rental point of view the outlook is excellent. Yields are increasing and rental void's decreasing, which is good news.

"Probably the biggest challenge for investors is that it's not as easy to finance buy to let now, with the credit crunch. But that's a general thing which is certainly happening down in England as well."

The Bank of Scotland recently revealed that annual house price growth reached 13.1 per cent in Scotland in the final quarter of 2007. This was the strongest price rise in the UK and well above the average increase of 5.2 per cent.

Mr Kendall added that the housing market was more stable in Scotland than elsewhere, particularly in relation to the boom and bust cycles evident in the south-east of England.

"There are a number of investors coming from out with the country, from the south-east and from Ireland as well… House prices in these regions have obviously gone up, and people who have equity are now looking for new markets to put their money into," he said.