”The hike in property prices linked to the difficulty in obtaining mortgages for first-time buyers is good news for the buy-to-let market,” said David Plaister, MD of LetAssured UK.
”First-time buyers will be spending more time in rented accommodation while they save for their deposit to purchase,” said Plaister. “It will provide the rental market with a little more stability and will probably create a feel good factor within the property investment sector.”
The figures are taken from the latest house price index from the Department for Communities and Local Government.
The index puts the value of the average UK home up 2.2% in January, compared with December and the increase takes the annual rise to 6.2%. The average home now costs £207,159.
”With property prices now stabilising and in some locations starting to grow, confidence should also start to grow,” predicted Plaister. “Buy-to-let property is once again becoming an increasingly attractive investment vehicle, with realistic prices, linked to a sensible mortgage, investment property can once again been considered as a real investment opportunity. However, the on-going property management should be given a great deal of thought!”