Confidence in the housing market, and stable interest rates have led to an increasing number of landlords expanding their portfolios in the buy-to-let market, according to new research.

The latest survey from the Mortgage Trust claims 30% of landlords, almost double the number 18 months ago, state they are currently buying more property.

Furthermore, over the next year, landlords expect to expand their portfolios by approximately 14%, which equates to an average of one property per landlord.

This appetite for investment growth is set against a backdrop of positive expectations for house prices, 83% of respondents predict they will rise by 2% or more over the coming year. Meanwhile, rental returns remain stable, with yearly rents currently standing at an average of 5.8% of portfolio value.

Buy-to-let landlords have a long-term perspective when it comes to investment decisions, said the Mortgage Trust, and the majority of landlords (73%) view their buy-to-let portfolios as a means to provide for the future.

And the government u-turn on Self-invested personal pensions (Sipp) appears to have had little effect in terms of landlords’ propensity to further invest in rental properties. An overwhelming 88% of respondents said that the withdrawal of the option to invest residential property in a Sipp would not have any effect on their property investment intentions.

Similarly, the introduction of Real-estate investment trusts (Reit) later this year has not had a great impact on landlords’ investment intentions. Of those questioned, 73% say they intend to continue to invest in buy-to-let rather than diversifying into Reits. Of the remainder, 19% say they intend to invest in a mixture of the two and only 3% say they would invest in Reits instead of in buy-to-let.

Nicola Severn, marketing manager at Mortgage Trust, said: "By emphasising the importance of capital return on investment, it is clear that buy-to-let landlords are adopting a sensible long-term approach to their portfolios."

"Although rental yields provide a regular monthly income for landlords, they are often used primarily to fund mortgage payments, service repairs and maintenance, or to acquire capital for further investment."

"With favourable borrowing conditions, healthy rental demand and an expectation of steady house price rises among investors, the outlook for the buy-to-let sector is very favourable indeed."