"The true meaning of buying off-plan is to buy into a development before anything is built. It is a huge leap of faith," says Stephen Hurford, of the new homes and investments office of estate agent Hurford Salvi Carr. "But there are ways of reducing that risk: by speaking with responsible agents, identifying good developers, visiting projects and, basically, doing lots of homework."

He adds that off-plan buying can be very rewarding: "It can be an excellent way of using limited capital to make a property investment." He offers this guidance:

• Take advice from a reputable agent, who should know what sort of developments are planned for an area. Many local authority planning departments now have development information online.

• Establish what else is being built locally, if you are buying a one-bedroom flat with the intention of letting it out, make sure it is not right next to other developments that may flood the area with similar properties.

• Most developers ask for a five per cent deposit, some insist on 10, 15 or even 20 per cent. Take care to assess how much you want to invest at this stage and make sure you have sufficient funds available at completion.

• At the early stages of a development, don't expect to see examples of kitchen and bathroom finishes. Instead, look at the development's aspect, size, amenities and competition.

• Don't get emotional about your investment. Research thoroughly and keep a cool head.