PFL in the News
1st February 2008
Investors certain of interest rate cuts
According to the latest confidence tracker report from investment consultancy Property for Life, investors arelargely optimistic about the future of buy-to-let despite the tougher market conditions of late.
Just over half (52 per cent) admitted to feeling the pinch as a result of the current 5.5 per cent base rate, and the same number said that this had impacted on their desire to buy. However, the attitude was much more positive when asked what they thought the Bank of England would do next regarding interest rates, with 74 per cent believing the rate would be cut during the course of 2008.
Unsurprisingly, a large majority (83 per cent) were against any further increases in the base rate.
'Time Is Right To Buy'
When it came to forecasting the future of house prices, opinions were divided. Around 57 per cent of investors thought there would be a drop in prices over the next twelve months; 26 per cent reckoned they would rise; and 17 per cent thought there would be no change.
When asked if they thought now was a good time to buy property, a resounding 69 per cent declared it was, an indication that serious investors are in it for the long term and can see beyond any price dips that may occur over the coming year.
David Austin, managing director of Property for Life, comments: '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.' Related Stories
