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House Prices Fall in December 2006 - Buy to Let Mortgages

08/01/2007

Halifax figures estimate a decrease in house prices in December 2006.

Last month Halifax stated that house prices fell by one per cent following stiff rises in October and November, but for the start of 2007 Halifax feel there will be a slow increase.

Property experts still feel there will be an increase in 2007 due to past history figures and trends.

"Higher interest rates, greater pressure on household finances and subdued real earnings growth will, however, constrain housing demand," stated Halifax chief economist Martin Ellis.

"We expect house prices to increase by four per cent in 2007."

This year the buy to let market will be in heavy motion and experts expect high levels of activity, this is due to high inward migration also strong tenant demand, places like the south-east area also London.

The Paragon Mortgage figures showed around 2006 the middling yields for buy to let investors gained around the 10 thousand pounds mark up. Experts still feel it is a good idea to ‘buy to let’ however only in the right places.