Landlord News

The average UK property price went up by 1%, from March to April this year. This means that the rate of house market inflation has reached double figures for the first time since 2007. However, the average house price of £167,802 remains 10% off the peak reached in October 2007, before the recession hit.

According to Jonathan Moore, Director of Easyroommate.com, the price increases will come as particularly bad news to first time buyers. Many were already struggling to generate the cash required to purchase their first property, and the inflated house prices will make it even more difficult.

Landlords can expect to see sustained demand from people who have been priced out of the housing market. The increasing prices will also come as welcome news to those landlords who have thought about selling off their properties. However, Martin Gahbauer, Nationwide's chief economist, claimed that the majority of landlords will be reluctant to put their properties on the market until prices reach pre-recession levels.

‘The very low level of interest rates has been supportive of this wait-and-see approach, particularly in the buy-to-let sector. Rather than a surge in cash buyers, the more important driver of rising house prices has been the low level of stock for sale’, Mr Gahbuaer continued.

David Whittaker, managing director of Mortgages for Business, remained sceptical over the prospect of any future house price increases. He claimed that the April rise would ‘represent the end of the current bull-run’ and that prices were likely to stablize and perhaps even fall as borrowers come to terms with the long term national debt.

Landlords can expect to see sustained demand from potential tenants during 2010. They are encouraged to research their Landlords Insurance options to ensure that their property investments are properly protected