According to specialist mortgage provider Paragon, more than a third of intermediaries saw influx of people looking for a buy to let mortgages in the final three months of 2011.

Paragon’s Financial Adviser Confidence Tracking survey (FACT) found that four out of ten landlords were taking out new buy to let products because they are expanding their portfolios.

While, a third were looking for new products so that they could remortgage for either a better rate of interest or to raise funds for other investments.

Most striking of all though was the number of first time landlords applying for funds, rising from 19 per cent in quarter three to 23 per cent in quarter four.

John Heron, Managing Director of Paragon Mortgages, said: "The final quarter of 2011 was for many intermediaries a successful one, with increased optimism about the coming months and a steady improvement in the level of buy-to-let business being written.

With record levels of rental demand being reported it is good to see that existing landlords are increasing the size of their portfolios but it is particularly notable that the proportion of new landlords is also increasing."

According to the Council of Mortgage Lenders, buy to let borrowings grew by 84,000 overall last year.