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While our television screens have been dominated by potential property investment tycoons in recent years it is important to remember some buy-to-let landlords simply fell into having an abode to rent. Figures from the Council of Mortgage Lenders show the number of outstanding buy-to-let mortgages has soared from just 120,300 in 2000 to more than 1m by the end of 2007.

While some have entered the market as part of an overall investment portfolio some have found themselves thrown into the role of a landlord almost against their will.

In a report the CML said a number of people turned to letting out their properties during the early 1990s as they were unable to sell their homes.

On top of this there are those who have inherited property, those who have had short-term job relocations as well as the recent phenomenon of young households who cannot afford to buy a property where they work but buy a cheaper property elsewhere to get their foot on the property ladder.

However with the prospect of a downturn in the market and few first-time buyers lining up to buy their abodes, a new category of investor who wishes to move into a bigger building and retain their first home as an investment may emerge.

This class of investor is being fuelled by the fact many lenders claim the initial drivers for the buy-to-let market are again becoming evident.

John Heron, managing director of buy-to-let lender Paragon Mortgages, said: "Tenant demand is currently rising rapidly as potential first-time buyers struggle to get loans for house purchase.

"This, coupled with an increasingly difficult market environment, is causing a growing number of people to rent their homes privately instead of selling."

Mr Heron described this as a case of history repeating itself.

He said: "The greatest driver of the private rented sector in recent times was homeowners deciding to let their properties during the downturn in the early 1990s. However, homeowners going down this route have to ensure they have the correct knowledge."

This appears to be backed up by recent figures from the Royal Institution of Chartered Surveyors.

In the first quarter of 2008 Rics found new instructions to let property increased significantly.

The net balance of chartered surveyors reporting a rise in new landlord instructions, an indicator of supply, increased to 29 per cent compared with minus 2 per cent in the previous quarter.

James Scott-Lee, a chartered surveyor and spokesman for Rics, said: "Some would-be sellers are retreating from selling and letting or re-letting their properties as they wait for mortgage lenders to offer buyers more favourable lending criteria.

"While transaction numbers in the sales market are weak, many are taking advantage of rising rents and yields in the private lettings sector."

However, he said there was a concern that as a result of this some were largely unprepared for the taxation involved with buy-to-let and how to maximise the benefits.

For example, he said landlords were eligible for a £1500 allowance when improving the energy performance of a rental property, such as installing loft and cavity wall insulation.

However recent research by Paragon revealed 86 per cent of landlords were unaware of this even though more than half had improved the insulation of a rental property.

Paragon Mortgages' Mr Heron said: "Casual landlords need to ensure they do their sums properly, account for all costs and know the laws and legislation around renting property.

"Good tax planning is key. How you implement, manage and run your tax affairs could have a major impact on your property investments and their financial profitability."

Steve Olejnik, head of sales for Sevenoaks-based buy-to-let intermediary Mortgages for Business, said record keeping was imperative.

He said: "With tax self-assessment, all claims must be substantiated. All that is required is a simple filing system containing all invoices for labour, materials and other expenses. Travelling expenses can also be claimed as long as the trip is wholly and exclusively in relation to the rental business."

However Mr Olejnik said the main area of confusion was between improvement and repairs.

He said: "Improvements to the property are classed as capital expenditure and are not allowable against rental income. Repair and refurbishment is classed as revenue expenditure and can be offset against income."

Paragon has recently taken steps to help landlords by producing a buy-to-let tax guide in conjunction with Kent-based Perry's Chartered Accountants.

The lender's advice is to make sure landlords have a tax strategy from the outset. One of the most important aspects of this is an exit strategy.

This is something Jeremy Law, head of buy-to-let for Mortgage Express said the buy-to-let industry needed to think about, particularly as after 10 years it was beginning to be seen as a mature market and there might be those who were looking to leave.

He said some customers had built up significant portfolios and would have to think about how they retire from being a landlord.

He said: "People do need to take some time to understand the implications of what it is to have amassed so many assets and how they are going to realise those or what they are going to do with those in the future."