PFL in the News
1st February 2008
Over 70% of landlords predict rate drop
Over 70% of buy-to-let investors are confident that interest rates will decrease over the next twelve months, shows data from Property for Life.
The firm's monthly investor confidence tracker also reveals 69% of investors are certain that now is a good time to buy investment property as long-term confidence is likely to buoy the market through any current strain.
The predicted drop in interest rates is widely expected to begin with a reduction in the base rate at the Monetary Policy Committee's meeting February 7. Over 80% of those polled believe that an interest rate rise is unneccessary given the current economic climate. David Austin, managing director of Property for Life, says: "The US Federal Reserve's decision to slash the interest rate twice within nine days has fuelled further speculation that the Bank of England will cut our base rate in February.
This is bound to inject investors with further confidence and if a drop is announced, the financial pressure should really begin to lift. "We expect the buy-to-let sector to underpin the housing market this year and all the signs are that landlords and professional investors are looking to add to their portfolios at a time when it is easier to negotiate lower property prices.
Now is a great time to buy and long term investors will not be affected by any slight drop in prices that we might see this year."
