So house prices are still charging northwards according to reports of the state of the housing market during the first quarter of this year – meaning that those of us in the buy to let sector can continue to battle on.
Should house prices begin to go back down, this will not be that bad for property investors, as long as they have done their homework. If you have properly researched your property then they should almost always have people desperate to rent your property. The latest official statistics from the Department of Communities and Local Government (DCLG), suggest that the average house price in the UK is now £206,890 - a figure that has risen more than £2,000 since February. Not bad for a couple of months work.
The Bank of England also appear to be on our side having raised interest rates by an additional 0.25 percent recently. In addition the minutes from that particular meeting suggest that some members would actually have liked to raise the rate by half a percent, so I guess more rate rises are on the cards then.
So which group is hardest hit by this rate rise? Our target market of young professionals and first time buyers of course. Young professionals can very rarely afford to buy their own property, whilst first-time buyers often rent for a period before taking the plunge into the housing market.
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