Bluesky

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● Buy to let was expected to be the worst victim of the credit crunch with supply fading out completely. But it appears that this hasn’t happened.
It may be that some less experienced investors have faded out, but the latest figures from the Council of Mortgage Lenders (CML) show that the sector has not only survived but is recovering.
The second quarter of the year shows figures from the CML that buy to let mortgages in arrears of over three months or more was 29,400 (2.49%), down from 35,600 (3.06%) from the first quarter.
The CML stated that these figures represent the first signs of stabilisation as the decline in lending had slowed. So it appears the property investment market may well have ‘bottomed out’. The most important regard for investors is that their investment property is viewed in the long term where they will see the growth again.

● Property prices are on the up again, which is making people ask, is it the time to jump back into the market? Mortgage lending figures may suggest so. Nationwide reported a 1.3% rise in prices following similar rises in May and June, while Halifax reported a rise also for the second time in three months. It may appear to be a small increase, but it has halted the steady drop in prices since 2007. With property prices creeping upwards, potential buyers are in sudden fear of missing out on the rock bottom prices.

● With all the depressing stories about the state of the property investment market over the last couple years, investors may wonder whether property values will return to the heights before the start of the credit crunch. Some worries have been put to rest as the market has started to show signs of a recovery. But many still worry how far prices will actually bounce back.
It has been recorded that the number of transactions have increased during the last two months, which is having a knock-on effect for businesses across the property investment sector, and price rises are benefitting investors.