PFL in the News
6th December 2007
Time for some serious investment
David Austin, managing director of Property for Life takes a look at the lettings market for 2008
The outlook for the lettings business looks positive for 2008, with David Austin, managing director of Property for Life, predicting that there will be increasing rental yields and strong buy-to-let activity amongst serious investors. He says: "The buy-to-let market has had a strong year, remaining buoyant despite slowing house prices and financial turbulence. This will continue into 2008, encouraged by three quarter per cent drops in the Bank of England base rate, taking the rate back down to five per cent. “Property prices will be static for the first half of the year, with overall price growth for 2008 reaching a potential maximum of three per cent.
As a result of this and the lingering aftermath of the credit crunch, we expect to see some slight dips in activity levels and demand as newer investors hold back until they are more certain about the state of the housing market. "However, activity levels among serious investors will continue to be high throughout 2008, particularly as better investment opportunities re-emerge and buyers focus on the solid longer term returns of bricks and mortar.
Demand for properties will be as strong as ever, buoyed by the growing demand from students, immigrants and those who prefer to rent as a lifestyle choice. With the private rented sector also increasingly taking up the slack on social housing, the future of the sector looks bright. "Having fallen back in some areas, rental yields will improve as a result of strong growth in rental values."
