Investing in a buy-to-let property was a no-brainer when interest rates were low. Borrowing money was cheap and cash wouldn’t grow in savings accounts. Now, though, higher interest rates are eating into landlords’ profits, which is causing investors to question whether their money really is as safe as houses in bricks and mortar.

If a landlord bought a property worth £200,000 in February 2022, Bank of England data shows they could have secured an average mortgage rate of 2.03 per cent on a 70 per cent loan-to-value (LTV) buy-to-let mortgage. After running costs are deducted, that landlord would turn an annual post-tax profit of £4,659, according to analysis from the estate agency Hamptons.

However, a landlord buying the same property today could expect a post-tax