Forecast for 2008 Buy to Let
It is strongly forecast that 2008 will be a very strong year for the buy to let sector. 2007 was a good year for the sector even though the markets were not as stable with the problems of slowing house prices and the financial pressures with the interest rate rises. The stability and trust has started to flow back into the property markets with the reduction of interest rates by a quarter of a percent to 5.5%.
Many analysts predict that these may drop further in the New Year to a level of around 5%. Another prediction is the slowing in the house price rises which are evident at the moment, the predicted rate of increase over 2008 is at just 3%. With all of these factors in mind it could bring back the serious investors to the sector.
Hotspots for Buy to Let
The beginning of 2008 could be slow for the average investor as they take a look at the markets and the trends that emerge before taking the plunge. However the serious investors will be looking to take 2008 by the scruff of the neck and again using bricks and mortar as their preferred investment opportunities. The demand of rental properties is still very high and growing, the factors that are behind this include the increase in the student population, the influx of immigrants into the country and the first time buyers who simply cannot afford to get onto the property ladder. It therefore goes hand in hand that the property investment hotspots will likely be the areas where the majority of the demographics outlined reside.
Areas such as Bristol, Southampton, Reading and Swindon are amongst the front runners that are predicted to be the top investment locations. Other areas that will be popular are regeneration towns or cities that are undergoing modernisation and attracting significant growth in terms of employment and housing; these include locations such as Middlesbrough.
2008 looks promising
With the increase in the investor levels coupled with the increase in demand then it looks that rental yields will be set to rise in 2008. This will go further to increasing the number of properties in the market as the demand sets to continue to rise and investors move back into the market.
The buy to let sector is expanding on a year by year basis and these factors are all contributing to the predicted continued success for the landlords and investors into these markets. Couple the factors outlined above with and it looks like 2008 will be a very good year for the buy to let investor.