The Scottish buy-to-let market is faring better than other parts of the UK, latest figures have suggested.

According to recent research from Birmingham Midshires, the average total returns for buy-to-let investors in Scotland was 16.6 per cent compared to 13 per cent for UK investors between June 2006 and June 2007.

Investment in the residential buy-to-let market has become popular among people in many parts of society, according to the Scotsman, including a new generation of "gutsy investors who don't necessarily follow the flock".

With some buyers neglecting to invest because of rising mortgage rates and general pessimism surrounding the market in Scotland, Braemore Property Management chairman William Frame said: "Those investors with guts are the people who are going to gain hugely from today's property market conditions."

With money for borrowing relatively easy to find and Edinburgh reporting annual capital gains of 12.5 per cent with other regions recording a 10 per cent growth, "the market will always reward those who aren't afraid to go against the flow", he added.

Paragon chief executive Nigel Terrington recently commented that the buy-to-let sector has recorded steady growth so far this year, providing affordable accommodation for 2.5 million UK households.

"The latest rise in borrowing costs may cause some prospective homebuyers to stay in rented accommodation for longer - buy-to-let helps fill the housing gap," he said.