New figures have shown that buy-to-let mortgage lending has increased, suggesting that the market was actually stronger than some analysts believed.

Figures from the British Bankers' Association (BBA) for April show that the number of mortgages for the purpose of buying residential property to let was 38,704, up from 35,546 in March.

It also found that lending for such loans totalled £5.9 billion compared with £5.6 billion in March.

A BBA spokesman said the figures showed the market was stronger than some had suggested. "It is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt," said David Dooks, BBA's director of statistics.

The National Association of Estate Agents president Chris Brown also gave an upbeat assessment of the property market this week by stating that it was largely "stable".

"Property purchase remains a good long term investment," he added.

Meanwhile, bargain-hunting landlords are also taking advantage of the growing number of properties being repossessed from homeowners unable to keep up their mortgage payments, other data suggests.

Figures from the Ministry of Justice show that the the number of people facing repossession is at its highest level since 1992. Some 38,688 mortgage possession claims were issued in the first three months of the year, up 16% on the same period in 2007 and 7% higher than in the last three months of 2007.

Banks and estate agents have a legal duty to sell a repossessed home at the best possible price, but in reality, many repossessed homes end up being sold quickly and at a discount.

Most agents aim to sell a repossessed property within three months, and time pressure means that the home is often priced more competitively than similar properties in the area.

Properties in extremely poor condition, however, end up at auction, and the number of repossessed homes going straight to auction is rising.

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