The profits to be made in the buy-to-let sector are hardly a well kept secret as both first-time and existing landlords invest in property as a means to benefit from high demand for rental accommodation.

Indeed, with buying a house presenting a particularly daunting challenge to many Brits and securing a mortgage also becoming more difficult, the number of people looking to the private rental sector to solve their housing problems has continued to grow in recent months.

And as in any industry, demand tends to drive up value, which can help in explaining why the latest LSL Property Services' buy-to-let index found rent prices in England and Wales rose by 0.4 per cent in May.

David Newnes, director of LSL Property Services, said: "The end of spring has brought with it renewed activity in the rental market, and rents have returned to the level seen before the impact of the stamp duty deadline rush by first-time buyers.

"Fewer tenants are able to leave the sector and the strong tenant competition is pushing up rents as a result."

Given the impressive returns that can be had from letting property in the current climate, it seems that investors look set to continue benefitting from the yields available in the lettings market.

But considering that buy-to-let properties are essentially a business venture, there are still risks to consider, and keeping assets profitable is a challenge that faces anyone who lets their holdings to tenants.

So in order to combat the risks associated with making substantial financial investments, cheap landlord insurance policies can protect property owners against the threat of unexpected repair costs which may threaten the ability of their portfolio to provide the returns that they initially expected it to - an important factor when it comes to keeping up with any buy-to-let mortgage payments.