ludlowthompson’s predictions for the New Year
- 23rd November 2011
- Our News
Prospects for buy-to-let likely to be strong, with first time buyers facing high deposit requirements.
With the New Year approaching rapidly, London’s Letting Agent, ludlowthompson, identifies the key trends for London property in 2012.
Strong prospects for buy-to-let
Stephen Ludlow, Chairman of ludlowthompson, says: “2012 looks like being a good year to invest in buy-to-let. The shortage of new homes, particularly in London, means rents are likely to stay high.
"With other investment products leaving savers potentially exposed to the Eurozone crisis, buy-to-let looks like a very attractive alternative.”
More finance available to fund property investment
“The thaw we’ve seen this year in lending for buy-to-let looks set to continue next year. The banks like the double security they get on their loan, in the tenants’ rental payment and the underlying asset security. Increased competition from lenders, particularly foreign banks and small merchant banks, could make borrowing rates more attractive.”
Achieving a good sale price requires clever tactics
“For people selling their property, the best tactic is to research how many similar properties are for sale nearby. The best time to sell is when there is a dip in similar stock – that will maximise the sales price.”
A challenge for first time buyers
“First-time buyers are likely to continue finding the high deposit requirements of lenders an obstacle to getting on the housing market. Without family support it is going to be difficult for first-time buyers to put up the kind of deposit that’s likely to be required to borrow at favourable rates.”
2012 looks like being a good year to invest in buy-to-let.
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