Buy to let landlords 'may see flat house prices this year'

07 June 2010

Written by Jeni Browne

House prices saw a decrease of 0.4 per cent in May compared with April, according to the Halifax house price index, which may affect the portfolios of buy to let landlords.

According to the report, the average property was worth £167,570, 8.3 per cent higher than its lowest level reached in April 2009, but still 16 per cent under its August 2007 high.

The typical value of property fell by 0.1 per cent in April, having added one per cent in March, following previous oscillations earlier in the year.

Martin Ellis, housing economist at the firm, commented: "The mixed pattern of monthly price rises and falls so far this year is consistent with a slowing market and is in line with our view that house prices will be flat during 2010 as a whole."

House prices were 6.9 per cent higher in May when compared with the same time last year, which marks the fastest pace of increase since October 2007.

In contrast to this data, Nationwide recently released figures that said the average value of property had grown 0.5 per cent in May.

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