PROPERTY developers are taking advantage of Worcester's burgeoning buy-to-let market, according to letting agents.

Buy-to-let properties grew by an average of almost 10 per cent during the fourth quarter of last year, according to the Association of Residential Letting Agents.

Part of the reason is that increasing house prices have resulted in more and more first-time buyers being unable to afford a property, leading to higher rental demand.

Another reason why Worcestershire, in particular, is enjoying a buy-to-let boom, is that it still represents "excellent value for money", according to Worcestershire property developers, Dodd Homes.

"Investors' interest is moving away from the traditional city centre areas where buy-to-let has had a strong foothold for several years," said financial director Ian Crawford.

"They recognise that the value now is no longer necessarily in luxury city centre developments where ever-increasing prices can make it difficult to achieve a return on the initial investment."

Mr Crawford said another reason the buy-to-let market had taken off was because investors were becoming "increasingly disillusioned" with the projected returns on their pensions.

"The buy-to-let market continues to grow because it has the potential to produce strong long-term returns and provide a profitable investment for retirement purposes.

"However, people entering this market should only do so for the long-term and should not perceive it as a way of making a fast buck."

Sandra Timmins, lettings manager for Andrew Grant lettings, in Foregate Street, Worcester, agreed buy-to-let was a good long-term investment.

But she added: "The debate around rising interest rates continues although any increases should have only a marginal effect on investor sentiment.

"Any downturn in buy-to-let sales - with some investors withdrawing from the market as a result of lower house-price inflation - could reduce overall supply."

A spokesman for Philip Laney & Jolly, in Worcester Road, Malvern, said developers will get better returns if there is a decrease in the buy-to-let market.

"Proper research and advice from accredited agents - such as those with the National Approved Letting Scheme endorsement - can help investors to decide whether to enter - or indeed leave - the market.

"For example - for those investors able to take a longer term view - a decrease in supply, no matter how small, may well lead to increased yields."