Landlord News

House prices fell by 0.1% in July and it is expected that they will drop 6% before the end of the year. Hometrack believe that the recent decrease was not a blip, it was the beginning of a lengthy downward trend.

The house intelligence business carried out a thorough review of English and Welsh estate agents. They discovered that a combination of dwindling interest among prospective buyers and increasing supply of available stock had led to the price dip.

It is predicted that consumer confidence will remain low as long as the British economy remains in a fragile state. The decrease in public spending is also to have a knock on effect on people's attitudes towards home buying.

Richard Donnell, Director of Hometrack, said, 'levels of demand for housing have been slowing for the last five months'.

'Further modest price falls are inevitable over the second half of the year as the volume of homes for sale continues to rise and demand remains weak on the back of concerns over the wider economic outlook and uncertainty over the impact of recently announced cuts in government spending', he went on.

In related news, it has been revealed that sellers were only able to obtain 94% of their asking price on properties in July. This figure represented a 0.3% decrease from the previous month.

Anybody considering the option of investing in buy to let property is advised of the importance of Landlord's Insurance.