Buy to let landlords 'may see portfolio values fall'

08 July 2010

Written by David Whittaker

Buy to let landlords may see a decrease in the value of their portfolios, as research reveals that house prices fell in June.

Martin Ellis, housing economist at Halifax, reported that the worth of homes declined by 0.6 per cent last month, slowing at a similar rate as it did in May and broadly flat compared with the first quarter of 2010.

The firm predicts that property values will remain largely unchanged throughout this year and said the decrease in the market since January supports this forecast.

However, low interest rates are likely to keep the number of people looking to buy houses up.

In 2009, the market saw a modest recovery as demand outpaced supply; however, more houses are now available for purchase, addressing this imbalance, Mr Ellis explained.

In contrast to Halifax's survey, Nationwide recently announced that property values had increased by three per cent in the last six months, although the rate of growth had slowed in the second quarter.

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