The buy to let bubble is far from being burst, according to the latest Residential Lettings Report from Bradford & Bingley Letting Agents. In fact, they go as far as to say that buy to let still represents a relatively risk-free investment, despite the recent scares about oversupply and falling rental yields.

In their latest reports, Bradford & Bingley say that the returns on capital employed remain pretty lucrative for the majority of landlords, with an average rental return of 6.25 percent, only marginally down on last year's figure of 6.5 percent.

However, the picture is not rosy for all landlords everywhere. Bradford & Bingley admit that there are areas where saturation has led to falling yields, particularly around parts of London and the South East. At the other end of the country, average returns in the North West have risen by an average of 1 percent, with some areas generating returns of 10 or even 11 percent.

John Crossley, managing director for Bradford & Bingley Letting Agents, said: "For those landlords in saturated areas who might be concerned about current rental voids and are considering relinquishing a buy to let property, their investment is unlikely to have failed as they should still have seen a good return given the capital growth that UK property has enjoyed. The buy to let market will remain a strong, sound, long-term investment choice, but the secret of success is sound planning and the quality of your property."

This view was echoed by Malcolm Harrison from the Association of Residential Lettings Agents, who also advised landlords to look at the needs of the local market before deciding on what type of property to buy: "The first step to a successful purchase is seeing a local agent to establish what the local market wants. Then, once you've established what the market wants, establish what you can afford."