Expect more, earn more, be more
Call us on 01244 421 261
Posted by Let Alliance on May 19, 2012
The UK’s return to technical recession will not affect investors’ portfolio buying plans, according to the latest Mortgage Solutions poll.
After suffering two quarters of negative growth, a survey by Landlord Assist suggested that the UK’s double dip could cause landlords to delay their investment plans. The report claimed that consumer confidence would be damaged by the UK’s return to a technical recession.
In the latest Mortgage Solutions poll, 55% of respondents said the recession would not affect their portfolio buying plans.
Leel de Silva, financial adviser at Axess Financial Services, said that the buy-to-let market had continued to grow and that the UK returning to recession would make little difference. “The number of buy-to-let investors has risen but we have fewer first-time buyers than we used to have, but that is down to the Stamp Duty holiday ending and people finding it difficult to raise money for a deposit.
“The broker market shrunk by 70% in the last three or four years so people who have remained in the industry have had more business. But it’s difficult to say whether being in recession has any effect on, we don’t think there has been a direct relationship.”
Andrew Baddeley-Chappell, head of mortgage strategy and planning at Nationwide, predicted that the housing market would remain flat in the coming year.
“The economy remains weak but despite that the housing market remains stable, if a little fragile. Our forecast for the housing market is that it is expected to be broadly flat, with prices showing little growth or moving modestly lower over the next twelve months.
“Of course, with a weak economy and little movement in the housing market its more likely that base rates will continue to remain lower for longer.”