Could value of buy to let portfolios increase on rising house prices?

30 June 2010

Written by Steve Olejnik

Buy to let properties may increase in value as a recent report was released showing that UK house prices rose in the first half of the year.

Nationwide has announced that the worth of homes went up by three per cent in the first six months of 2010, growing at a monthly rate of 0.1 per cent in June, slowing from a pace of 0.5 per cent in May.

However, the rate of expansion in the past three months was 1.8 per cent - rising from 1.7 per cent in the three months preceding them.

Martin Gahbauer, Nationwide's chief economist, commented: "The month of June presented a picture of broad stability for the housing market."

There have also been indications of an increase in the supply of property for sale, which he suggested may be a reaction to the abolishment of home information packs.

In contrast to Nationwide's figures, the Land Registry recently reported that the worth of a typical home fell by 0.2 per cent in May.

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