Figures from Connells revealed buy-to-let valuations were up 79% on September 2009, albeit from a low base and, last month, accounted for 11% of all valuations.

This was the highest proportion Connells has recorded since it began compiling the data two years ago.

Overall activity was down 1% compared to September 2009 due to the distortion of figures in late 2009 as buyers rushed to buy properties before the end of the Stamp Duty holiday.

Nevertheless, Ross Bowen, managing director of Connells Survey and Valuation, said this did not mean activity was on the wane: “We have continued to see slow and steady growth in buyer activity in the last three months. In the third quarter of 2010, activity was actually up 4% compared to 2009.”

Bowen added: “The buy-to-let market is seeing a mini resurgence. Rising rents and tenant demand have tempted many property investors onto the market, despite the recent changes to Capital Gains Tax.

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“Buy-to-let mortgage finance is also showing signs of loosening, allowing more would-be landlords to capitalise on strong yields. Buy-to-let lending was up 12% last quarter on the previous quarter, and 15% on the same time last year. It is great to see lenders like Paragon re-entering the market, and with competition on the rise we should see even more affordable products made available to investors.”

Connells said the monthly increase has been pushed up by a 23% increase in the number of homeowners looking to move and 20% more first-time buyers in the market than in August.

Bowen said consumer confidence remains resilient despite the uncertainty in the housing market and wider economy, while the increase in housing supply has reduced upward pressure on house prices and allowed many people to buy their first home or move.

In addition, remortgaging activity also rose 23% in September compared to August and was up 31% on September 2009.

Bowen said: “Remortgaging volumes are still low historically, but it’s good news that activity is continuing to head north.

“Record low interest rates have meant that many borrowers remained on tracker mortgages in the past six months. But with inflation at 3.1% and talk of the MPC raising the interest rate in the near future, many borrowers have been remortgaging- and we expect this to continue over the next quarter.”