RICS predicts a soft landing for house prices says Lawrenson of Letting Focus
In the last blog I said that repossessions are on the up – and explained how to buy repossessions at auction.
However, as I predicted throughout last year, unless you are in an area that is oversupplied with a particular property type, the fall off in house prices could be short-lived.
The Royal Institute of Chartered Surveyors (RICS) believes that the heaviest falls in house prices are behind us, going against current opinion of more house price falls
They said that the Bank of England's commitment to keep the market liquid will mean that interest rates will be cut back to five per cent during the first 6 months of 2008, making any negative price growth in the market short-lived.
They also said that repossessions will rise from 30,000 to 45,000, but that the current employment situation is strong enough to keep the market resilient and avoid any repeat of 80,000 repossessions back in the 1990s.
I agree.
Credit Availability - Mortgage Loans Harder to Get
Despite the RICs predictions for next year, they still see tough times ahead in 2008, with tighter lending conditions that are likely to impact on the buy-to-let market in particular. So, unless you have good credit, it could be tough to be an investor.
However, they also state that their research shows "little evidence of widespread sales of investment properties taking place".
The effect of the credit crunch will dissipate slowly meaning that those seeking to obtain finance in the first half of 2008 may struggle.
But the employment picture should be OK throughout the year, helping to prevent significant numbers of repossessions and the subsequent influx of supply into the market.
This should ensure that house price growth remains broadly flat over the course of the year.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property investment experts.
I’m, David Lawrenson, the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property book.
What’s unique about LettingFocus is that I offer independent unbiased
property networking seminars covering property investment and letting because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make money.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer all your questions on letting property because I have been a landlord and property investor for over 25 years.
LINKS
Find out about GREAT DEALS we have arranged for landlords by clicking here: Property Investors’ Affiliate and seeing our Affiliates page.
More products will be added over the coming months. If you are a merchant with national coverage, get in touch!
For SEMINARS, click here: Property Seminars, Networking Evenings and Consulting
For the NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Seminar Event
For ONE TO ONE CONSULTANCY help click here: Private One to One Consulting
For TESTIMONIALS from past customers click here: Testimonials
To BUY THE BOOK click here: Buy the Book at Amazon
For THE HOME PAGE OF THIS BLOG click here: Blog
For THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For GREAT OFFERS on Products and Services for Landlords, click here: Landlords Resources
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
Copyright of Blog: David Lawrenson 2009.
This blog is updated roughly once a week usually on a Monday or Tuesday.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
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Please note if you have a website & are thinking of reproducing material here - that’s fine but we DO require a link to the blog to be included, including also all the links in this section. The full article including all links must be available to ALL VIEWERS of your site and not restricted.
To view posts on related topics click on Categories.
WANT TO ADD A COMMENT?
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To view past comments, again and rather oddly (we think), you’ll need to click “link to this post” and view the comments (which will appear at the bottom of the post.)
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
However, as I predicted throughout last year, unless you are in an area that is oversupplied with a particular property type, the fall off in house prices could be short-lived.
The Royal Institute of Chartered Surveyors (RICS) believes that the heaviest falls in house prices are behind us, going against current opinion of more house price falls
They said that the Bank of England's commitment to keep the market liquid will mean that interest rates will be cut back to five per cent during the first 6 months of 2008, making any negative price growth in the market short-lived.
They also said that repossessions will rise from 30,000 to 45,000, but that the current employment situation is strong enough to keep the market resilient and avoid any repeat of 80,000 repossessions back in the 1990s.
I agree.
Credit Availability - Mortgage Loans Harder to Get
Despite the RICs predictions for next year, they still see tough times ahead in 2008, with tighter lending conditions that are likely to impact on the buy-to-let market in particular. So, unless you have good credit, it could be tough to be an investor.
However, they also state that their research shows "little evidence of widespread sales of investment properties taking place".
The effect of the credit crunch will dissipate slowly meaning that those seeking to obtain finance in the first half of 2008 may struggle.
But the employment picture should be OK throughout the year, helping to prevent significant numbers of repossessions and the subsequent influx of supply into the market.
This should ensure that house price growth remains broadly flat over the course of the year.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property investment experts.
I’m, David Lawrenson, the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property book.
What’s unique about LettingFocus is that I offer independent unbiased
property networking seminars covering property investment and letting because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make money.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer all your questions on letting property because I have been a landlord and property investor for over 25 years.
LINKS
Find out about GREAT DEALS we have arranged for landlords by clicking here: Property Investors’ Affiliate and seeing our Affiliates page.
More products will be added over the coming months. If you are a merchant with national coverage, get in touch!
For SEMINARS, click here: Property Seminars, Networking Evenings and Consulting
For the NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Seminar Event
For ONE TO ONE CONSULTANCY help click here: Private One to One Consulting
For TESTIMONIALS from past customers click here: Testimonials
To BUY THE BOOK click here: Buy the Book at Amazon
For THE HOME PAGE OF THIS BLOG click here: Blog
For THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For GREAT OFFERS on Products and Services for Landlords, click here: Landlords Resources
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
Copyright of Blog: David Lawrenson 2009.
This blog is updated roughly once a week usually on a Monday or Tuesday.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
Over on the right hand side under all the previous blog entries you will see a button which says “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator.
Please note if you have a website & are thinking of reproducing material here - that’s fine but we DO require a link to the blog to be included, including also all the links in this section. The full article including all links must be available to ALL VIEWERS of your site and not restricted.
To view posts on related topics click on Categories.
WANT TO ADD A COMMENT?
To add a comment to this post, you just click on “link to this post” then simply add your comment.
To view past comments, again and rather oddly (we think), you’ll need to click “link to this post” and view the comments (which will appear at the bottom of the post.)
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
Labels: house price forecasts, House price outlook, house price trend, landlord coach
This entry was posted by lettingfocus, on
Monday, December 31, 2007.
