House prices to remain low
News Category: Industry News
Published: 09-Jan-2009
This article was brought to you by Rentman the premium property management system.
Letting agents could continue to benefit from more affordable house prices over the next two years, it has been suggested.
As reported by LandlordExpert, Arthur Savage Insurance's Barry Shereston has predicted that house prices could remain depressed for at least 18 months because of the impact of the credit crunch on mortgage borrowing.
Letting agents could benefit by being able to add properties to their portfolio while prices are low.
Earlier this month, Nationwide reported that UK house prices fell by 15.9 per cent in 2008, with the average property falling 2.5 per cent in value during December, compared to a 0.4 per cent fall the previous month.
Mr Shereston commented: "Lower house prices present an opportunity for cash buyers to increase their portfolio - albeit more selectively going forward."
He added that buy-to-let mortgage borrowers could benefit from falling interest rates by using money saved from lower repayment rates to reduce the period of their loan.
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