Continued Uncertainty In The UK Property Market Is Good News For Investors!

Uncertainty in UK property market Just when the UK property market was starting to look stable, the latest housing report from the Royal Institution of Chartered Surveyors (RICS) has caused a ripple of concern with headlines such as ‘Mini property boom over amid concerns about double dip recession.' However, this continued uncertainty heralds good news for UK property investors for three reasons. Before we discuss these, let's look at the report.

Prices fall and properties increase

The RICS UK Housing Market survey (July 2010) reports 8% more of its members cited a fall in UK property prices for the first time since July 2009, as demand from purchasers slipped back and the number of properties coming to the market continued to increase. RICS reports that "increased uncertainty" about the economic outlook was making home buyers more cautious and that a further 28% of surveyors forecast further price falls over the coming months.

Ian Perry, spokesman for RICS, says: "The fall in the RICS house price is a reflection of both the increase in supply following the scrapping of Home Information Packs and the more cautious stance from buyers. Significantly, the forward looking price expectations numbers suggest this softer trend will continue through the second half of the year."

Fewer mortgages mean a larger investment market

Melanie Bien, director of Private Finance mortgage brokers, comments: "Concerns about the economy and future job prospects are causing an increasing number of buyers to put off any house purchase until there is more certainty. Most people are reluctant to commit to something as expensive as a property purchase when they are worries about losing their jobs, or interest rates rising."

Furthermore, Paul Samter, an economist at the Council of Mortgage Lenders (CML), explains: "We still expect house purchase activity to be muted in the coming months. Both consumer demand and lending capacity remain distinctly difficult to call, especially in the light of the government's austerity measures and their possible impact."

Three reasons to invest in UK property now

While the UK property market may now be the toughest for first time buyers in decade, the climate is looking good for investors - particularly in the Buy To Let market.

1. Property prices are forecast to remain low.
2. The drop in demand from first time buyers means there are more properties on the market for investors to choose from.
3. As mortgage demand drops, rental demand increases.

All in all, this combination of double dip factors is turning out to be a double delight for wise investors. Ready to learn more about UK property investment? Check out Understanding UK Investment Property. View details of currently available UK investment properties.

Or, if you're ready to invest and want to know what we can do to help, call David Ball, Axis Senior UK Portfolio Manager on 01273 447 300 for a no obligation introductory discussion.

Live with Abundance

Rod Thomas FCA

Posted in UK Property News

1 responses to 'Continued Uncertainty In The UK Property Market Is Good News For Investors!'

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Added 05-Oct-2010 12:49

Investing in property is a growing sector, with many people taking the option to buy a property and let it out. An investment property can bring enough income to cover the mortgage and maintenance.

Continued Uncertainty In The UK Property Market Is Good News For Investors!

1 responses to 'Continued Uncertainty In The UK Property Market Is Good News For Investors!'

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