Broker firm Landlord Mortgages has advised buy-to-let investors that they should be looking for around a 40 per cent discount on property.

As reports from across the country suggest that house-prices are on the downturn, investors should be looking to protect themselves from further declines in the market.

Lee Grandin, managing director of Landlord Mortgages, said: "If you are under market value today but are then undercut by 20 per cent in the next year then no, it wasn’t a good time to buy. It depends on what kind of discount you are getting at this moment in time and I would say that a 15 to 20 per cent discount is not enough."

Over 95 per cent more chartered surveyors have reported a decline rather than rise in the market, continuing a nine-month run, with Nationwide reporting a one per cent drop on last year''s average house price.

Mr Grandin suggests looking to repossessed properties for appropriate discounts.