5
Dec
Buy to let sector 'will stay strong in 2008'
The demand for buy to let mortgages will remain strong next year
despite market stagnation during the first half of the year, it has
been predicted.
According to Property for Life, house prices will be static during
the first half of 2008, prompting novice buy to let investors to
hesitate to commit to purchases.
David Austin, managing director of Property for Life, said:
"Property prices will be static for the first half of the year,
with overall price growth for 2008 reaching a potential maximum of
three per cent.
"As a result of this and the lingering aftermath of the credit
crunch, we expect to see some slight dips in activity levels and
demand as newer investors hold back until they are more certain
about the state of the housing market."
However, experienced investors will remain active throughout the
year and the market will return to robust health shortly after,
prompting these investors to return to the buy to let sector, Mr
Austin predicts.
Moreover, with three 0.25 per cent cuts to the base rate of
interest in prospect, the buoyancy in the buy to let market seen in
2007, is set to continue, he added.
