Research from the lender also showed 7 out of 10 landlords are optimistic about the buy to let market in 2008. Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, said: “It is encouraging that buy to let landlords indicate they are feeling buoyant about the outlook for 2008. Regardless of a tough financial year, it is clear the buy to let property market is still healthy for long-standing landlords, especially for those in the South East of the country.”

The optimism is stronger among professional landlords, however. Almost half (49%) of those who own 20 or more properties make enough money to supplement their savings, and a further 40% are so successful that they rely on their buy to let portfolio for their main income.

By contrast, only 15% of landlords with just one property manage to save any proceeds and less than 4% are able to earn a living from the income generated. When it comes to the outlook for the year ahead, 92% of professional landlords are confident or very optimistic about the coming months, whereas just over half of those with one property (56%) feel similarly optimistic.