Investor confidence remains

Posted: 18 Mar 2008 11:41:08 GMT

UK property investors remain particularly upbeat about the market in London.

UK property investors remain particularly upbeat about the market in London.

That is according to a new report from the Young Group, which showed that 86 per cent of investors believe house prices in the city will rise or remain static within the next 12 months.

This has boosted confidence, with 95 per cent of current investors saying that they have no intention of selling their properties within the year.

A further 50 per cent said that they intend to increase their investment portfolios in London.

"As purchase transaction volumes in the residential property investment market reduce, it is increasingly evident that the London market is distinct from that of the UK as a whole," said Neil Young, chief executive officer of the Young Group.

"Both property and rental values in the capital are cushioned from the cooling in the housing market, buoyed thanks to the inherent disparity between supply and demand," he added.

The survey also revealed that 89 per cent of investors expect the base rate of interest to fall below five per cent by the end of the year.

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