What will 2010 bring for landlords
The let property market ended with a high last year, surprising everyone in the retail sector. The property market has always been a difficult area to forecast, and 2010 will be no acceptation with different companies and retail experts predicting different fortunes for property in the UK. While Savills predict a fall of 6.6% in the market Hamptons International predict a rise of 3-5%, in relation to last years prediction of a fall throughout the market.
2009 has brought a surprise in the market, for landlords and property owners at least, first time buyers were all but shut out of the market with lenders offering them high deposits and outrageous rates on mortgages. Those who were already on the property ladder however where reaping the benefits of the credit crunch, seeing a slide in mortgage rates and a reduction in house prices meant they could invest further. This also helped keep the repossession levels well below the level predicted.
2010, however will continue to see the Bank of England's rate at its low of 0.5%, but come summer or autumn the rate should start to rise again, although it will be a long wait until it is at its high of 5.75% in 2007.
Buy-to-let investors may continue to reap the benefits of the recession, that is as long as they can find a lender who is willing to offer them a decent mortgage. However all of this news, facts and figures should not be taken lightly as this time last year the prediction was a tremendous drop and got a rise so maybe this year we will see the opposite.
Insure My Let Property offers a wide range of landlord insurance products tailor made to suit your needs.
January 06th 2010