Investors have no need for concern

Posted: 24 Jan 2008 15:54:38 GMT

Property investors should not be concerned by rumours of a house price crash.

Property investors should not be concerned by rumours of a house price crash.

A number of analysts have forecast a gloomy year ahead for homeowners but Stuart Law from Assetz is unconvinced.

In fact, the chief executive expects 2008 to be prosperous for most investors, particularly those involved in buy-to-let.

He said that current market data is being distorted by other factors which are helping to paint a bleaker picture than is true for most people.

"My message to buy-to-let investors is that there is no need to panic - a fall in interest rates is imminent and with reports of reduced mortgage rates to follow and rising rentals, investors can be confident of strong returns in 2008," revealed Mr Law.

"Despite recent speculation, the situation is far from bleak for those with money invested in the property market. While rumours of a 20 per cent fall in the commercial property market are rife, current sales are being distorted by distressed property funds, which are forced to sell in the current climate to fund unit redemptions.

"Those standing strong are almost guaranteed to weather the storm, with prices expected to return to far more buoyant levels before the year is out," he continued.

Assetz recently predicted that house price growth would reach five per cent in the next 12 months.

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