Released on = July 20, 2007, 11:15 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = Current and prospective buy-to-let investors alike will no
doubt be interested in the contents of a report on the UK housing market that has
been issued this week. The report by HBOS - one of the \'big four\' banks - looks at
current house prices, analyses recent trends and attempts to make predictions on
future housing market movements.

Press Release Body = Current and prospective buy-to-let investors alike will no
doubt be interested in the contents of a report on the UK housing market that has
been issued this week. The report by HBOS - one of the \'big four\' banks - looks at
current house prices, analyses recent trends and attempts to make predictions on
future housing market movements.

One of the more interesting features of the report, from an investment point of
view, is the estimate that house price growth will top six per cent in 2007. This is
actually a revision of a previous estimate made by the bank - four per cent - and
reflects the considerably pronounced growth in house prices that was seen in the
first quarter of this year.

HBOS says that the UK economy is strong, enjoying its 60th successive quarter of
growth. As such, the housing market is \"underpinned by sound fundamentals\" including
high levels of employment. However, at the same time it is noted that continually
rising house prices will curb demand for properties as mortgage payments become more
expensive.

Martin Ellis, chief economist for the bank, commented: \"Whilst house price growth
was stronger than expected during the early months of 2007, there are now more signs
that the market is slowing. We expect this trend to continue. House price inflation
should ease over the second half of the year.\"

This might seem like a mixed report, but it actually puts the buy-to-let investor in
a good position. One the one hand, the housing market is not expected to crash, or
even suffer any particularly heavy setbacks. This means that investments will
continue to hold a high resale value.

At the same time, everybody is in work, everybody needs somewhere to live, but few
can afford to buy a house at current prices. The fact that the Bank of England keeps
raising interest rates - and is expected to do so again before the end of the year -
only adds to the problems for prospective homebuyers.

This means that the buy-to-let investor with residential properties in the right
areas could well make a killing. HBOS predicts that market forces are going to curb
demand for houses, but prices are unlikely to come down by any significant amount.

A recent report from Hometrack concluded that around 70 per cent of people in rented
accommodation are dependent on the lettings industry for a place to live. One of the
authors of the report, Richard Donnell, felt that rental property is an essential
feature of the modern landscape.

\"Our analysis shows that the private rented market we have today has simply become
an extension of the affordable housing sector,\" he said.


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

Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA, 0845 400
7000, linkexchangeseo@gmail.com