Property remains a good investment

Posted: 01 Nov 2007 10:31:42 GMT

Undersupply and a growing economy are underpinning the UK housing market and that is why it remains a "very viable option" for investors.

Undersupply and a growing economy are underpinning the UK housing market and that is why it remains a "very viable option" for investors.

Inside Track says that medium to long-term property investors can still make money in the market despite price growth cooling in recent months.

In fact, the firm says that the recent slowdown may actually be beneficial to a market which was previously growing at an unsustainable rate.

"Quite frankly, the sort of level of price increases that we've seen over previous years is just not sustainable. You cannot have prices increasing at that pace year on year on year. We've seen the market calm down to a more sustainable, steady rate," commented Pierre Williams from Inside Track.

"Just because [prices have] not rocketed at the same pace as they have over the previous few years doesn't mean that it's not a good investment. On the contrary, it's quite a relief that the massive hikes of recent years have calmed down.

"We believe that property is a very good medium to long-term investment," he added.

Property investors have been boosted this week with two separate surveys putting month-on-month house price growth at over one per cent in October.

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