Released on = May 15, 2007, 10:59 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = House prices have continued on what seems like an inexorable
upward path in the first few months of 2007 - something that spells good news for
the buy-to-let sector. According to the latest official statistics from the
Department of Communities and Local Government (DCLG), the average house price in
the UK is now £206,890 - a figure that has risen more than £2,000 since February.

Press Release Body = House prices have continued on what seems like an inexorable
upward path in the first few months of 2007 - something that spells good news for
the buy-to-let sector. According to the latest official statistics from the
Department of Communities and Local Government (DCLG), the average house price in
the UK is now £206,890 - a figure that has risen more than £2,000 since February.

Added to the increase in house prices is the recent decision by the Bank of
England\'s monetary policy committee to raise the interest by a quarter of a
percentage point. This decision was made in attempt to get a grip on rising
inflation and has, at a stroke, made the cost of obtaining a mortgage and buying a
house much more expensive.

Mortgage lenders have reported a last minute rush on fixed rate products in the wake
of the decision - but even these are fixed at 5.25 per cent, still a high rate. In
comparison, this time last year the base rate was 4.5 per cent.

The two groups of people hardest hit by the rise in house prices and interest rates
are young professionals and first-time buyers. These represent a significant share
of the buy-to-let landlord\'s core market. Young professionals can rarely afford to
buy their own property, while first-time buyers often rent for a period before
taking the plunge into the housing market.

According to Trevor Williams, chief economist for Lloyds TSB corporate market, last
week\'s interest rate rise \"will reduce the incomes that people have to spend on
going out and consumer durables\".

A quarter per cent rise \"effectively adds something like five per cent to interest
payments\", he added. With affordability being taken a step further away, many of
this latter group will be forced to continue renting, or will wish to continue
renting anyway as they wait to see if the market will stabilise or even recede.

An additional benefit from the investor\'s point of view is that increased house
prices mean increased asset value. This, coupled with the lack of supply in a hungry
housing market, means that the portfolio owner that chooses to sell - for whatever
reason - is almost guaranteed of a handsome profit.


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

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