Almost three quarters of property investors believe now is still a good time to purchase property, despite 44 per cent admitting to feeling the pinch of the higher interest rates .
As the Bank of England announced its decision to hold the base rate this month, investors were undecided as to the likely direction of base rate movement over the next twelve months, with an increase, static rate and decrease receiving 34 per cent, 25 per cent and 41 per cent of the vote respectively. Surprisingly, just over a quarter of investors believe that the base rate will rise above 6 per cent over the next year.
The survey also indicates that the majority of investors are expecting house prices to increase over the next 12 months, with 48 per cent of those polled predicting an increase and only 14 per cent expecting negative growth. However, 38 per cent of investors believe that following the recent slowing of growth, prices will remain stable for a further year.
David Austin, managing director of Property for Life, comments: “Confident as ever in the returns offered by the housing market, property investors are keen to continue to expand their portfolios, undeterred by the higher interest rates and the financial turbulance of the credit crunch.
“Providing the base rate does not stray above 6 per cent, the buy-to-let market will remain buoyant as the majority of investors are looking for a long term solution and recognise that bricks and mortar remains unrivalled as an investment asset.”
