Released on = May 11, 2007, 1:23 am

Press Release Author = Charlotte Burrows

Industry = Real Estate

Press Release Summary = A financial industry expert has warned of a \'potential
crash\' in the property market says National Homebuyers.


Press Release Body = F&C Investments\' Ted Scott believes a negative yield on
property could lead to buy-to-let investors selling their homes as they can no
longer cover costs - which would precipitate a housing market crash.

This scenario will be made more likely should the Bank of England\'s monetary policy
committee (MPC) choose to increase rates to 5.75 per cent in the near future - as
has been predicted.

Indeed, Mr Scott suggests that Mervyn King, the bank\'s governor, would have done
better to raise the rate of interest to the aforementioned level this month.

\"A 50 basis point increase would have shown consumers that Mervyn King and the MPC
mean business and that they are serious about nipping the problem of inflation in
the bud,\" he explained.

\"However, with a negative yield on property, which is likely to fall yet further,
the buy-to-let segment of the property market is looking increasingly fragile and
those investors unable to generate a yield from rent could be forced to sell.

\"This poses the threat of a potential crash in the housing market.\"

Property market expert Julian King from National Homebuyers agrees.

\"This is the beginning of the end of property price confidence,\" he said.

\"The increase in enquiries we are receiving from buy-to-let mortgages is
unprecedented.

\"Many are experiencing a negative yield already and with today\'s hike in interest
rates, we predict a deluge of buy-to-let investors needing to sell their home
quickly.

\"As landlords are increasingly less able to cover their costs and the buy-to-let
market becoming less and less profitable this will add to the precipitation of a
housing market crash without any shadow of a doubt.\"

National Homebuyers is the UK\'s leading fast property purchase company that
guarantees to make an offer to purchase any property, in any condition or location
in the UK, quickly and without the need for Hips packs. National Homebuyers also
refund up to £1,000 of the vendors\' legal fees.

For further information on a quick house sale or to release equity in your home,
please contact National Homebuyers on 0870 979 8118 or visit
www.nationalhomebuyers.co.uk.

Web Site = http://www.nationalhomebuyers.co.uk

Contact Details = Sterling House
20 Victoria Way
Burgess Hill
West Sussex
RH15 9NF
0870 979 8118
Fax: 01444 257333