PFL in the News
10th December 2007
Serious stay confident in the gloom
Serious investors are remaining confident amid the doom and gloom of the pre-Christmas housing market, according to the third investor confidence tracker from Property for Life. Despite only 40% of investors expecting house prices to increase over the next 12 months, the desire to add to property portfolios is stronger than September when the run on Northern Rock began.
Two thirds of investors are also anticipating that the Bank of England base rate will see an overall decrease over the next year. Consequently, three quarters believe that now is a good time to invest in property. Investors are taking a realistic outlook, recognising that the long term benefits of an investment in property will outweigh the effects of the current market slowdown. Almost 70% of investors retain the desire to make further purchases in the current climate. This is up from 60% in September when the credit crunch first hit, showing that the slight waver in confidence is being overcome among most serious investors.
David Austin, managing director of Property for Life, comments: "Serious property investors are extremely market savvy. They realise that the housing market is going to have a slower year in 2008, with less than half predicting price increases. However, the outlook for interest rates is a lot more positive, with 66% expecting the Bank of England to reduce the base rate over the next 12 months. "As a result, investors are keen to buy before prices go back up, despite having felt the pinch on their finances in recent months. "The shadow of the credit crunch appears to have passed over and, while remaining realistic, investors are aware that the strong demand for rented accommodation will continue to buoy the buy-to-let market, producing lucrative returns over the long term. As ever, the confidence of serious investors remains high. They will also be able to find some very good bargains where some less experienced landlords look to withdraw from the market."
