A housing market survey last week showed that the average number of buy-to-let properties sold per agent had dropped to less than half that of last year.

The National Association of Estate Agents says that ‘choice based lettings’ schemes could plug the gap in this market, making letting a more stable option for private landlords.

‘Choice based lettings’ involves a local authority working with private landlords to give their clients more choice about where and in what type of property they live. This opening up of the market could revolutionise the buy-to-let industry by providing a greater choice of properties for a previously restricted market

The April NAEA survey showed that first-time-buyers had returned to the market for the second month running in April, and that the number of properties sold on a buy-to-let basis was half that of last year. The same survey showed that the number of properties agents had on their books had increased by two compared to last year.

Peter Bolton King, chief executive at the National Association of Estate Agents, said: "By embracing a ‘choice based lettings’ system, private landlords would be exposed to a brand new market that could considerably improve the number of potential tenants available to them and increase the number of properties successfully let."

"This is good news for individuals looking to invest in buy-to-let property, but they must find out whether this is something their local authority is looking to introduce first."

Statistics from www.odpm.gov.uk reveal that the number of people waiting for local authority housing has steadily increased year on year since 2001 and grown into a market that has almost 1.5 million people looking for suitable accommodation.

Although one and two bedroom homes are very popular in the private sector, the rentals market for local authority housing presents a very different story. The slant is towards two bedroom properties with over 800,000 people waiting for such properties in 2004.

The size of this new market could prove to be very good news for those planning to purchase property through a self-invested pension (SIPP). At the moment property SIPP’s are very restrictive as they can only be used for the purchase of commercial property. However, in less than one year’s time, private investors will be able to purchase residential property though this revolutionary pension vehicle.

Mr Bolton King said: "Choice based lettings schemes are at the forefront of the lettings revolution. Times are changing and landlords would do well to consider this option if they wish to remain competitive in the lettings market."

"With considerations such as the size of the local authority lettings market and financial planning for the future it would seem that ‘choice based lettings’ is a route for serious consideration by existing and future private landlords."

‘Choice based lettings’ is still in its infant stages in the UK with pre-pilot stages running in Harborough and Mansfield. Landlords wishing to become involved in such a scheme need to consider a range of issues including whether they are happy to have their properties, and contact details, advertised to local authority customers.

In areas where ‘choice based lettings’ is a consideration, there is usually a consultation period, which involves a variety of stakeholders including landlords, councillors and the general public.