Slumping stock markets, the interest rate cut and the uncertainty surrounding millions of pensions mean bricks and mortar are increasingly appealing to investors.

The attractions of the buy-to-let property market are increasingly strong to the affluent members of the 45 to 65 age group.

Many of them have inherited received significant sums or properties.

These factors have driven the remarkable growth of the private-rented sector since 1996, when big lenders got together to make mortgages for landlords as easily available as those in the mainstream home loans market and at broadly similar interest rates.

About 250,000 properties in the UK are owned by buy-to-let landlords.

When Cherie Blair splashed out almost £500,000 on two flats in Bristol - one for her eldest son Euan's university years, the other as an investment - she was merely following the hordes.

The Government has committed itself to sending 50 per cent of school leavers into higher education in the next decade.

Halls of residence are already expensive and set to climb as a university system designed for far fewer students tries to balance the books.

This means the demand for private accommodation in university towns and cities, such as Brighton and Hove, should soar in the next few years.

An analysis from UCB Home Loans, Nationwide's specialist self-certification lender, has identified buoyant investor demand in Leeds, Middlesbrough and parts of Birmingham and Manchester.

On the face of it, buy-to-let property is the investment which can't fail.

Purchasers who entered the sector four or five years ago, before the latest boom, are sitting pretty.

Many have seen the value of their asset double, while the UK stock market has halved since the highs of the dot com boom.

Dwindling dividends are further bad news for shareholders, who have to look on while landlords enjoy a steady rental income.

However, there are a few things to bear in mind before jumping into the market.

The pace of house price rises will surely drop off and could even fall. And advisers say property should be part of a widely spread portfolio.

Buying property to rent involves considerable start-up costs, including legal and survey charges, mortgage fees, refurbishment costs and stamp duty on properties above £60,000.

Unless investors raise money by remortgaging their main home, buy-to-let usually requires a four or five-figure lump sum to begin with.

Loans are usually offered up to a maximum 85 per cent of cost although money is cheaper for borrowers needing 75 per cent or less.

Richard Donnell, head of residential research at leading agents FPDSavills, said: "Overgearing is what's going to sour your investment."

He calculates an investor with an 85 per cent loan on a £250,000 property loses almost £3,000 in a year if there is no tenant for three months and the rent falls ten per cent.

Landlords in central London and other property hotspots had to accept rent reductions last year and experts suggest keeping rents at, or even slightly below, the going rate in a particular area.

Empty property, known as voids, are painful for landlords committed to monthly mortgage repayments.

However, given other saving options, property still has big attractions.

Ray Boulger, from brokers Charcol, said: "After expenses, mortgage repayment, agency fees and other costs are deducted, a net return of about three per cent is realistic coupled with, for example, a five per cent rise per year in capital values in the next decade.

"An eight per cent annual return compares pretty well with any other investment, with a chance of more if property prices lurch up again."

As a general rule, lenders require the agreed monthly rental to be at least 130 per cent of mortgage repayment to give investors a reasonable margin of safety.

Prudent investors also take out insurance when each new assured shorthold tenancy begins to guarantee monthly rental payments for as long as the tenancy lasts.

Demand is usually stronger in the lower reaches of the market - one and two-bedroom apartments costing between £500 and £850 per month - in provincial centres.

Detached houses rarely command higher rentals in line with their much greater cost.

But Mrs Blair is probably different from other parents of students by spending a large sum on brand new property.

If the student market is your target it is invariably better to buy harder-to-hurt older houses with larger rooms and fairly basic facilities - preferably with your youngster on hand to collect the rent and suggest the over-enthusiastic partygoers leave the premises before they cause trouble.

The Association of Residential Letting Agents (Arla) provides a list of specialist letting agents in any area and other useful advice to potential investors.

For details, call 01923 896555.