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Property Investment
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PRESS BUOYED
BY THE BRIGHTON EFFECT – The media reports since Autumn 2007 following the hikes in interest rates, the introduction of Home Information Packs and the ‘credit crunch’ resulting in the collapse of Northern Rock, have all had an effect on the market but the picture is certainly not as portrayed by the media. Whilst the market is not at the peak that has been seen in recent years properties still continue to sell in Brighton. Brighton remains an incredibly popular location and a great area to live for those seeking both good business and a more relaxed way of life, whilst providing an ideal base for commuters. ‘During 2008 astute investors who do their homework on ‘real market value’ and future tenant demand will reap the benefits.’ Richard Bowser – Editor, Property Investor News, March 2008. Brighton certainly is the place to be – the city where ‘people want to live, work and play!’ Nick Clark, Managing Director of the Homebuyer and Property Investors Show, comments: ‘The recent Council of Mortgage Lenders figures show that the buy-to-let market is more buoyant than ever, with an increase of over £3billion from the first to the second half of 2007, and the number of buy-to-let loans increasing to 179,000, up from 171,800, across the same period. Investors are aware that demand for rental property still far exceeds supply and that there are still good investments to be made. Success is about knowing where and how to invest.’ There is increasing demand to live in this part of the UK. Over the past ten years there has been a net 5% increase in the population living in the South East of England and with building land a finite resource that increase in demand will undoubtedly result increasing house prices. Economists believe that we are likely to see a series of interest rate cuts this year, which should help to improve the confidence in the market place and the Government will want to see the market improve prior to the expected General Election in 2009. The Royal Institute of Chartered Surveyors predicts that there will not be a national house price fall in 2008. The average UK house price rose in the 12 months to November 2007 by just over 7.5% and the rate of increase was consistent month on month. From an economic perspective the scene is set for an increase in borrowing leading to more people buying and thus increasing house prices. Our view is that the market is just levelling out. Brighton and Hove has always been lucky, it is a popular city and people will always want to live here. In fact, demand in the South East is likely to remain stronger than in most other regions of the UK. The proximity in time and distance to London and other major cities further adds to the coastal attraction of Brighton & Hove. Demand outstripping supply should go some way to keeping the market buoyant in 2008. We confidently predict that house prices here in Brighton & Hove will continue to increase but maybe not at the same rate as they have done in the past few years, but at a higher rate than the rest of the UK. Our confidence is shared by Professor Michael Ball, author of a recent report for the Royal Institution of Chartered Surveyors. He believes that ‘The UK housing market looks much better placed than many others in Europe because of the greater interest rate flexibility.’ |