Investor confidence high

Confidence is high among property investors in the UK, particularly when it comes to the London market.

New research from the Young Group shows that 86 per cent of property investors believe that house prices in London will rise or at least remain the same over the next year.

Further to this, 39 per cent believe that the same will be true for properties outside of London.

An encouraging 95 per cent of those surveyed said that they intend to hold onto their investment properties for the next 12 months at least.

"In the case of buy-to-let, investors need to ensure that the balance between property supply and demand is in their favour and the strongest market for buy-to-let investments is London," said Neil Young from the Young Group.

"Young Index figures show that confidence in the London market outstrips the rest of the UK by more than eight times, which is a consequence of the continued undersupply of property in the capital and London's dominant position as the world's leading centre for global business and finance," he added.

The survey also highlighted that 89 per cent of investors expect the base rate of interest to be below five per cent by the start of 2009.

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