Banks and building societies too have come to take a more circumspect view of the market, and have tightened their lending criteria. Interest rates are higher than for residential mortgages, and borrowers now require larger deposits – 25 – 30% is typical, compared to 10- 15% a few years ago.

If you are considering entering this market, what are the factors you need to think about?

Most importantly you need to be sure that Buy to Let is the investment you want. The money you use for your deposit might perform better elsewhere, perhaps in a high rate savings account. Buy to Let means tying up your capital in a property that may fall in value, particularly in the short term. You need to be comfortable with this possibility.

Assuming that to be the case, you need to research the market, investigating the risks as well as the benefits. You will want to buy in the right area for your market, which will vary depending on the nature of the tenant – young professionals, whether single or married, will have different priorities to a couple with a young family, and their requirements will not be the same when they are seeking accommodation.

You also need to do the arithmetic, considering the cost of the property and the level of rent it is likely to generate. Most lenders require a margin of 125% of rent over mortgage interest – will your property achieve this? What will happen if your property is not tenanted for a while, which is always a possibility – will you be able to make the mortgage payment from other sources? Similarly, can you cover the cost of a major repair to the property if necessary, such as having to replace the boiler? You will also need to bear in mind the arrangement fee charged by the lender.

Finally, keep a sense of proportion. We’ve all read stories about Buy to Let investors who are millionaires, at least on paper. However the days of rampant house price inflation are gone and you need to invest for income not short term capital growth. While property may rise in value over a period of years, this can never be guaranteed, and should be treated as the icing on the cake, not the sole rationale behind the investment.

While the market has changed substantially over the last three years or so, opportunities will always exist for those investors who are prepared to stick to the established principle of investing for rental return rather than short term capital growth. If you can accept that the value of the property may fall in the short term, but are prepared to fund the deposit required and ensure that the property can return income of 125% of monthly mortgage interest payments, Buy to Let can be a good long term investment.

Earlier this month, it was reported in national media that six people had been arrested over a scam which police believe compromised the security of more than 20,000 bank accounts and credit cards in the UK.

It continues to be a tough time for savers and investors with the base rate showing little sign of moving upwards. So, what are your options and how can you make your hard earned savings work for you?