More people are buying-to-let in Gloucester – with Stroud staying at the same level – as the latest survey of landlords shows increased buying and selling activity in the private rented sector, according to a Gloucestershire lettings manager.

Debbie Vowles, area manager for Andrews Letting & Management in the county, said there had been more movement in the city's market in the last 12 months.

Her comments come as research from the Association of Residential Letting Agents (ARLA), shows the number of landlords saying they had bought properties in the past 12 months increased from 23 per cent to 25 per cent in the final quarter of last year.

Debbie, who is also the South West representative for ARLA, said: "In Gloucester we've had more movement in the market with more people buying to let, due to prices dropping slightly and the good rental yields available in the area. Stroud and Cheltenham have stayed mainly the same." The number of landlords that sold a property in the last 12 months also rose from six per cent to eight per cent during the same period, according to the research.

The figures suggest that landlords focused on reshaping their property portfolios during the year.

However, the number saying they expect to acquire further properties in the next 12 months dropped slightly, from 27 per cent to 25 per cent, while the number saying they expect to sell rose from eight per cent to nine per cent.

Debbie added: "I don't expect a fall (in Gloucestershire) in the number of people looking to purchase property to rent in the near future. There are still opportunities to make a strong long-term investment, provided that you have the equity to take advantage of the low mortgage rates currently on offer.

"The South West is shielded somewhat from the tough economic conditions that some other parts of the country are experiencing, and also benefits from there being consistent demand to live in this aspirational area, and also employment opportunities.

"There is still a great deal of demand for rental properties in the region, and because of this, what we do need is more rental properties of all types, from one bedroom flats right through to family homes."

The research also reveals landlords have been steadily decreasing the percentage they are borrowing on each property. This could reflect a continuing lack of mortgage finance or be a reflection of the drop in property prices in some parts of the country. The current average loan-to-value of 46 per cent represents the lowest seen since the second quarter of 2007, when landlords reported an average of 60 per cent. Tim Hyatt, president of ARLA, said: "Private rented sector forecasts have stated that the rental sector will still offer growth in the coming year, probably of four to five per cent according to Liam Bailey of Knight Frank."

Ian Potter, ARLA operations manager, added: "These statistics indicate that landlords changed their property portfolios throughout last year, in some cases expanding portfolios despite gloomy economic climate."