RICS predicts a soft landing for house prices
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.
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 investorHowever, 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.
If you need more advice on property as an investment or buy to let please ask me. I’m David Lawrenson from property investment company www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on residential property letting and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
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.
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 investorHowever, 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.
If you need more advice on property as an investment or buy to let please ask me. I’m David Lawrenson from property investment company www.lettingfocus.com
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
I’m an expert on residential property letting and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog and run a landlords advice service - check out my columns for FinancialExpress.net and Archant’s “The Guide” magazine
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, property seminar programme at my website www.lettingfocus.com.
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
This entry was posted by lettingfocus, on
Monday, December 31, 2007.
