Investors upbeat about market prospects

Posted: 11 Jan 2008 10:18:32 GMT

Property investors are confident about the state of the housing market, despite a belief that house prices will not rise markedly in 2008.

Property investors are confident about the state of the housing market, despite a belief that house prices will not rise markedly in 2008.

A new study from Property for Life reveals that 75 per cent of investors believe that now is a great time to invest in the market.

However, 40 per cent believe that house prices will not rise this year but the confidence about the state of the market comes from reduced pressure on finances.

A cut to the base rate of interest in December and a belief among most analysts that more are to follow have helped to increase investor confidence.

"December's base rate reduction is a sign of a promising year ahead for investors. Although the decision was taken today to hold the rate this month, we can look forward to the prospect of another drop early on in the year," said David Austin from Property for Life.

"As always, the long term prospects of bricks and mortar are healthy. With no slowing of demand for rental property, the buy-to-let sector is playing a key role in helping to underpin the market," he added.

The survey revealed a seven per cent drop in the number of investors who are feeling the pinch as a result of interest rates.

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