PFL in the News
7th December 2007
Investors hold their nerve
Confidence in the buy to let market was on the rise in November although more than half of investors - 56.6 per cent may still be feeling the pinch from interest rate rises, confidence in buy-to-let has weathered the credit crisis and subsequent market slowdown, according to property investment consultancy Property for Life.
In their survey of buy-to-let investors, 68 per cent of respondents said that the interest rate rises would not deter them from making future purchases, a considerable surge from the 60 per cent recorded back in September. Much of this optimism stems from a long-term view of the buy-to-let market, as two-thirds of investors thought that interest rates would decrease over the next 12 months.
Consequently, a healthy 74 per cent believe that now is actually a good time to invest, giving them the opportunity to buy property for less and reap the rewards later. Although there was still uncertainty as to the direction of house prices next year, the majority of investors were confident. Forty per cent of respondents predicted an increase, 28 per cent anticipated a fall, and 32 per cent thought that there would be no change.
David Austin, managing director of Property for Life says: “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, with 74 per cent certain that now is a good time to buy. They will also be able to find some very good bargains where some less experienced landlords look to withdraw from the market."
