Released on: November 6, 2007, 6:56 am

Press Release Author: Lodge Furniture

Industry: Small Business

Press Release Summary: In the uncertain climate of the UK housing market we look at
what it means for the buy to let investor, wht can be done to help and the
predictions for the market.

Press Release Body: It seems that we are besieged at the moment with stories of
uncertain house price inflation and the market slowing down but what does this mean
for the buy to let investor.
In this uncertain climate with such conflicting views it is extremely difficult to
know what to believe. Last weeks Hometrack figures (Considered by some to be the
most reliable source in the market) revealed a drop in selling prices of 0.5% in the
most affluent London areas. However Hometrack also reported that less people were
putting their houses up for sale, perhaps they are waiting to see what happens with
the much speculated interest rates or are unwilling to commit to a new property in
such uncertain times. This combined with the CML (Council of Mortgage Lenders)
prediction of a rise in repossessions and a drop in mortgage lending in 2008 give a
very gloomy picture of the housing market. However conflicting with this are figures
from Nationwide published last week that show house prices were up 1.1 % but they
went on to say that 'The underlying dynamics of the market are clearly not as strong
as this time last year' and again a report of less people searching for properties
and less mortgage approvals was indicated.
The resounding opinion coming from the leading estate agents seems to be that
although the market is not as buoyant as that of 2000 and the height of the boom is
over that it will be a soft landing rather that a crash and house prices will remain
steady and show modest 3% rises.
What does this mean for the private landlord and buy to let investor ? Well, the
hardy among us who are in it for the long term will benefit from peoples caution to
commit as they seek to rent for a longer period. Property Investment company Inside
Track's Head of Communications Pierre Williams said the negative headlines were not
'borne out by reality' and that short term fluctuations were not the prime factor -
it was how the market performed in the long run. He went on to say the worsening
undersupply situation and the buoyant overall economy would underpin long term
property prices. He added that the high inflationary state in the market was 'not
sustainable' and the slowdown could be seen as a 'relief'. If the market stabilises
long term growth will be underpinned and investors should be able to plan for an
investment future in the property market.
In the short term there is much a buy to let investor can do to protect their
investment. The savvy investor:
. Keeps tabs on the property locations through local newspapers and websites
. Performs their own due diligence with respect to rental yields
. Takes décor into consideration. Poor décor can be costly in both time and money.
. Furnishing their property to suit the potential tenant. Companies such as Lodge
Furniture can supply furnishings with a style and cost to suit most rental
properties.
. Gains as much local knowledge as possible.

In the long term investors should be able to plan ahead with the promise of a more
stable market.


Web Site: http://www.lodgefurniture.co.uk

Contact Details: 0845 257 0254