Amateur landlords who borrowed wisely and put their money into well-located properties, with tenant-pleasing features, such as proximity to public transport and neutral decor, are doing OK, thank you.

This was not the outcome expected when the housing market started to weaken in the summer of 2007. The demise of buy-to-let was forecast widely, with hundreds of thousands of overextended buyers of rental flats becoming overwhelmed by the burden of more expensive mortgage repayments and succumbing to repossession.

These predictions show the error of assuming that the property market collapse of the early Nineties will repeat itself in every detail in the downturn of the late Noughties. For one thing, the experience of the last decline provides no useful guide to the behaviour of buy-to-let investors, as their numbers were few at that time.

Today's typical amateur landlord is described by one observer of the sector as “quite wealthy, in a good day job and with a good slug of equity in his own home”. Suspicious of the blandishments of developers, he is also sensible enough not to have committed funds to inner-city schemes in towns oversupplied with new apartments.

He may be dismayed at the slew of statistics suggesting that the housing market is stagnating, but he is under no immediate financial strain. Quite the reverse, in fact, as the income from his rental properties is improving, compensating for increases in the cost of borrowing.

Rents have been rising strongly, up by an average of 11.7 per cent across Britain and by as much as 29.2 per cent in the South West, according to research from Paragon, the lender. These statistics accord with Royal Institution of Chartered Surveyors research, which highlighted how lucrative the landlord game had become for many.

Estate agents now report that landlords who are possessed of some spare cash are even adding to their portfolios. They are snapping up properties that hapless first-time buyers who are currently compelled to rent could acquire in the future when the credit crunch at last loosens its grip. For the moment, however, slumping figures for mortgage approvals, released yesterday, suggest that this will not be any time soon.

Another forecast made as the sentiment in the housing market started to deteriorate was that lower prices could produce bargains for would-be first-time buyers. Such opportunities are appearing, but only those possessed of substantial deposits can secure them. The cost of borrowing is rising remorselessly, with some two-year fixed-rate mortgages now priced above 7 per cent; at the end of 2006, the typical rate was 3.99per cent. This latest increase indicates that banks remain disinclined to lend to anybody, least of all first-time buyers.

Those who cannot rely on the Bank of Mum and Dad must continue to dwell in rented accommodation in a state of youthful irresponsibility that starts to pall once you are close to 30. They may feel grateful that they have a roof over their heads - at a price - but resentful too at the tax breaks enjoyed by their landlord for whom the downturn is proving surprisingly rewarding.

Money Central: 10 tips to survive a property downturn