High rental yields are tempting investors into the buy-to-let mortgage market, says the Association of Residential Lettings Agents (Arla).

Ian Potter, operations manager for the residential lettings industry body, commented that rental yields - which average between four and five per cent - currently offer higher returns than other financial vehicles through banks.

Yesterday the Bank of England cut interest rates down to 0.5 per cent, a move which was seen as more bad news for savers, who have seen their rates of return plummet since the onset of the credit crunch.

Mr Potter argued that bricks and mortar are evidentially a safer bet than stocks and shares, although private landlords need to conduct "extensive research"on prospective properties to ensure they get the best returns.

He added: "Buy-to-let remains a solid investment, particularly if you're looking to commit for the long term and not out just speculatively investing or looking for quick capital uplift."ADNFCR-2002-ID-19061785-ADNFCR

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