Investors 'confident' in property market

Published: April 03, 2008

The credit crisis does not appear to have had a negative impact on the property investment market, according to new research.

A survey by investment specialists Property for Life found that 71 per cent of property investors are planning to expand their portfolios.

The figure was more like 60 per cent before the Bank of England started cutting interest rates last December.

"The vast majority of professional investors are looking to expand their property portfolios this year, with confidence remaining high," said David Austin, managing director of Property for Life.

"Demand for rental accommodation is still driving the market, pushing rents up and a record 65 per cent of investors say they are no longer feeling the pinch of higher interest rates."

He said that recent interest rate cuts and the expectation that more are to come means the "desire" for buy-to-let property is unlikely to decline.

Some experts believe that propertyinvestors will be the chief beneficiaries of a slowdown in the housing market.

David Hollingworth, of London & Country, told the Mirror that potential first-time buyers will probably continue renting until the lending market stabilises.