A PROPERTY investor has given Southampton's buy-to-let market a vote of confidence by snapping up the bulk of the flats in a new £110m development.

Delph Property Group has bought 169 apartments in the 14-storey block of 219 flats to go up this summer in East Park Terrace. It will stand alongside a landmark hotel, set to become Southampton's highest building.

It comes after the Daily Echo reported how the future of one of city's other key developments was plunged into doubt after homes giant Wilson Bowden admitted it had shut down work at Admiral's Quay in Ocean Village.

Just three of the planned five blocks of flats have been built, leaving the project half-finished and plans for a bustling new waterside heart for the city in tatters.

There have been fears over supply of new-build apartments in the city, particularly for the buy-to-let market, with more than 5,000 flats in the pipeline But Richard Page, director of business development at Delph, said: "While we are mindful of market conditions, we believe that the lettings market in Southampton will continue to go from strength to strength.

"East Park Terrace is particularly well located for business and university employees, so we're confident that we will be able to let this high quality product at attractive prices."

Mr Page said Delph had avoided traditional residential hotspots such as Manchester, Leeds and Newcastle, where oversupply was a problem. Instead it had concentrated on cities such as Southampton, Bristol and Newport, where he claimed demand was higher "We identify the right scheme, in the right location, with high demand for good priced rental apartments in town centre locations. It's a straightforward strategy which has served us well, and continues to prove successful even in the current climate," he said.

Delph will manage a portfolio of studio, one and two-bedroom apartments for rental in the new block,which is expected to be finished by the end of 2009.

The remainder are expected to be available for rent or shared ownership through a housing association in talks with the developer Imperial Property.

Cllr Royston Smith, Cabinet member for economic development, said: "It's a vote of confidence in the market in Southampton that a company will buy that many flats.

"I think the market is reasonably buoyant in Southampton and I'm optimistic it will remain so. I don't think we've outstripped demand for Southampton yet."

The East Park Terrace development will include a four-star, 22-storey 212-bedroom SAS Radisson hotel, and 82,500 sq ft of office space, which could become a corporate headquarters for a global firm.

The hotel will be flanked by a lower 11- storey 122-unit "apart-hotel" where guests can stay for months with their own kitchen facilities.