Property investment market analysed

Posted: 12 Oct 2009 12:24:53 GMT

Smaller property developments and house-building "are still going forward", but there are "very few companies" building flats, it has been suggested.

Richard Bowser, editor at Property Investor News magazine, said that the idea of buying off-plan property is currently more of a theory than a practice due to the small level of development that is taking place and a significant number of mothballed projects.

This situation is "the reality of the market", he explained, before claiming that it is the larger property developments that have slowed down more than others.

Mr Bowser called the off-plan market "history" and described the sector as "the empty stable after all the horses have bolted and someone is trying to slam the door".

His comments come after the Land Registry's House Price Index for August showed that the average property value in England and Wales dropped 0.1 per cent in August to £155,968.

The group revealed that this price was 9.4 per cent lower than the level recorded in August 2008.



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