New figures showed that despite the nationalisation of Bradford & Bingley, there was a significant increase in the number of borrowers taking out buy-to-let mortgages in September.

Spicerhaart Financial Services monthly mortgage survey revealed 58 per cent more borrowers opted for a buy to let mortgage in September, the biggest rise in over 12 months.

The rise signalled that investors were still confident about the prospects of property investment despite the market turbulence and the large-scale withdrawal of buy to let mortgages.

Steve Cox, operations director of Spicerhaart Financial Services, said: “There has been a lot of speculation about buy to let running its course and with the demise of Britain’s biggest buy to let borrower, Bradford & Bingley, these views were further exacerbated.

“However, it is clear that borrowers do not share these views, with experienced landlords seeing this as a prime opportunity to buy properties at a reduced price.

“Since July, we have seen a steady increase in the number of new buy to let mortgages being taken out as investors look to take advantage of lower property prices, the continued demand for rented properties and increasing income yields.

“Buy to let continues to offer good opportunities for investors and the current state of the money markets has resulted in many people believing that properties could well be a safer option than shares or even saving deposits.

“With house prices already falling by 15 per cent, now is an ideal time to buy an investment property – although investors should be viewing these as long term investments.

“Investors who buy now will be in a good position once the market improves and demand returns.”

Mr Cox added that despite 85 per cent of buy to let products disappearing from the market in the past year, there were still plenty of buy to let mortgage products available to seasoned investors with good-sized deposits, who were looking to buy in established markets.