Earlier this month, The Council of Mortgage Lenders announced it would introduce new valuation guidelines and standards for new-build property, reducing risk for both borrowers and lenders.

But Mortgages for Business, specialists in buy to let mortgages, said that new procedures would only reflect and reinforce measures that many lenders had already put in place.

At present, only a small group of buy to let lenders will lend on new-build properties, and these companies already have stringent measures in place to ensure the buy to let mortgages on offer reflected the true property valuation.

Jonathan Moore, head of marketing at Mortgages for Business said: "There is currently an oversupply of new-build apartments, particularly in city centres, leading to concerns over property valuation and achievable rents. This has meant already cautious lenders are increasingly refusing to lend to this property type."

The CML measures were designed to restore lender and investor confidence in an area of the buy to let market which has suffered in terms of property valuation and availability of finance, and which has also seen a significant downturn in investors' interest.

"It seems unlikely that buy to let lenders will offer new-build mortgages in short term until there is an upward trend in sector activity," Mr Moore said.

"Investors should be wary of discounts and guaranteed rents because a property should be attractive without the need for additional incentives.

"Successful portfolio landlords who are still active in the market tend to buy existing properties in areas they know well and have extensively researched. Properties in up and coming areas or where there is an underlying reason for capital and rental uplift provide the basis of a solid investment strategy. It is essential not judge the buy to let sector by performance of new build property."