Potential landlords will still able to find excellent investments this year, claims the Association of Residential Letting Agents (ARLA).

According to figures released by the body this week, the number of property transactions conducted by landlords rose steadily in 2011 and although the same numbers may not be hit this year, there will still be enough activity to keep the market buoyant.

During the final three months of 2011, 25 per cent of landlords questioned said that they had purchased new properties for their portfolios, and increase of two per cent on the previous quarter.

While at that the same time, the number of landlords which sold a property rose from six per cent to eight per cent.

Looking into this year, 25 per cent of respondents stated that they intend to add buy new properties. And while that is down by two per cent on last year, it is still a significant number.

Tim Hyatt, president of ARLA, said landlords can still expect to growth from the private rental sector (PRS) in 2012, although it will be at a more cautious rate than seen in 2011.

"PRS forecasts have stated that the rental sector will still offer growth in the coming year," he said. "Rental growth will remain robust across all sectors, albeit at a more sustainable level of around four per cent to five per cent for this year.

"This will come about in part because of the continued inactivity in the sales market but nothing like the growth we have seen for the past two years.

“But the PRS still represents substantial value for investors looking to enter the market or increase their participation."

The findings made by ARLA back up those which were released as part of the Young Index report last week, which showed that one in five landlords added new properties to their books last year.