BOURNEMOUTH landlords are experiencing a buoyant market.

Nationally, until the credit crunch, buy-to-let was seen by many as a sure-fire way of making money, according to a recent Channel 4 investigation.

However, repossessions across the UK are now rising and new-build flats are selling for 26 per cent less at auction than the original sale price, the channel discovered.

With more than half of landlords owning at least one new-build flat, Channel 4 questioned whether buy-to-let could be the UK's version of the recent American "sub prime" mortgage crisis.

Anthony Gibney of Bournemouth-based BH Lettings said: "Certainly at the moment we have lots of new-build two-bed flats on the market and they are easy to let.

"The council wants 40 per cent of any new development to be affordable and I think that that can only be positive."

Rob Cooke, Martin & Co lettings director in Bournemouth, confirmed that the town is in a good position.

He said: "Within Bournemouth there's a diverse range of new-build property with many occupying premium position along the sea front.

"Such properties are more likely to attract a homebuyer rather than a buy-to-let investor.

"There's a constant demand for one-bed and two-bed properties within Bournemouth with new-build properties often being more attractive to tenants," he added.

"In Bournemouth many local employers work with us to source properties for their employees - either re-locating or on short-term contract - with new-build being a main priority in selection."

"Buy-to-let should be viewed as a long-term investment. While for some investors yields are not as high as they have experienced in the past, the private rental sector makes a valuable contribution to the housing market as a whole and will continue to do so."

According to the quarterly Association of Residential Letting Agents (ARLA) Review and Index, published on March 31, buy-to-let investors have seen increases in their returns during the first quarter of 2008.

The average return on a mortgaged investment is just over 20 per cent and returns on cash purchases average just under 11 per cent. Flats show a marginally higher return than houses, except in the North.