A rise in interest rates has left landlords asking whether now is a good time to invest. Director of Drewery's Property Services PAUL LONG examines the opportunities in the current climate.

After the recent interest rate rise, the question most property investors are asking is, should we continue to invest in property and is the buy-to-let bubble about to burst?

Some investors have already stopped investing in property, as there are concerns about the impact of further rate rises and the large influx of buy-to-let investors introducing more rental properties to the ever increasing available stock.

However, we should not forget interest rates are still at their lowest for some time and most lenders have gained continued confidence from low mortgage arrears over recent years, allowing the terms of many buy-to-let products available to continue to improve.

Property investors benefit from lower interest rates compared to 10 years ago and generally the minimum deposit required for a buy-to-let is much smaller.

And the recent interest rate hike may increase the demand for rental accommodation. Many first-time buyers will be put off buying property because of increasing house prices and interest rates, so alternative living accommodation will have to be found.

In many cases, the only option available will be to look towards the rental property market.

Recent results from ARLA (Association of Residential Lettings Agents) from their second quarter survey - conducted among 10,000 subscriber landlords provides interesting information.

It found nearly two thirds of all landlords interviewed recently expect to acquire further investment property in the next 12 months and even if house prices fall, nine out of 10 will not sell.

Another recent survey carried out by ARLA provided further results on the general supply and demand of rental property across the UK.

It found rises in capital values are reinforced by the balance of supply and demand, which is reported as showing there are more tenants than there are available properties in London and the south east, with the rest of the country close to equilibrium.

Overall, more than a third (36 per cent) of letting agents say there are currently more tenants than properties.

In areas such as the south east, the market continues to grow as demand for rental properties continues to rise and generally there are more tenants than properties.

Most professional lettings agents are able to offer comprehensive and accurate advice to the prospective buy-to let investor.

If you are considering joining the ever increasing numbers of buy-to-let' investors, perhaps to provide a pension when you reach retirement age for example, speak to your ARLA agent first.