In light of current market conditions, investors are re-evaluating their portfolios and introducing high income, cash positive property says Assetz, the property investment specialist.

Many investors are struggling with cash negative buy-to-let property as costly mortgages start to impact on returns, regardless of rental growth. As a result, higher income properties such as student
accommodation are proving increasingly popular with buy-to-let investors.

Stuart Law, chief executive of Assetz, said: "While we have always advised investors to supplement capital growth property with strong rental income property, some have previously relied too heavily on speculative property, leaving themselves open to dips in the market.

"This, coupled with rising mortgage costs, means that many are currently having to re-evaluate their property portfolios and readdress the balance with the acquisition of higher income property, or face the less attractive alternative of selling cash-negative units in their portfolio.

"This is a step that all property investors should consider taking. Even if a property performs well in terms of capital growth over the years, the property itself should be cash positive or the investor should own some high income property to balance the cash-flows out," Mr Law added.

Student, hotel room and UK holiday homes come out on top for reliable rental income combined with strong capital growth.

"Over the last six months, the demand for student property and hotel rooms in particular has been high. They provide one of the most secure investments for high returns, with strong rental yields in the region of eight per cent.

"UK holiday lets are also proving very robust, with low entry costs and high gross yields," Mr Law added.