It might not offer the highest yields in the country, but London's buy-to-let sector is certainly one of the most active given the strength of demand for properties and the continuing issue of undersupply.

And despite statistics for the fourth quarter indicating that rent prices in the capital may have reached their peak, Property Wire reports that a number of experts in the lettings game believe the city will see further growth in the future - a factor that means investment is still an attractive option.

While average rental values dropped by 2.3 per cent in the last quarter of 2012 - dipping below £1,000 a week for the first time since the beginning of 2011 - conditions in the market mean that the long-term trend will be for an even greater expansion of the private rented sector as home ownership becomes increasingly unaffordable.

As Cluttons head of research Sue Foxley says, this means that investors will see a return to rising rent prices as the growing strength of demand eventually starts to have a more significant impact.

"Despite the expectation of further rental falls during the first quarter of 2013, investors remain unfazed and are taking a long term view to purchases," she commented.

With London drawing individuals and families from all over the world due to the size of its economy and the relative strength of its job market compared to other cities, it seems that landlords who plan for the long-term will reap the rewards in spite of the slight slump in the fourth quarter.

But while their portfolios look set to remain profitable, it's vital that they remember the importance of protecting their assets in order to safeguard their finances - an issue that landlord insurance policies can take care of in the event of any unexpected damage or essential maintenance work.