Could weaker house prices see buy to let portfolio values fall?

29 July 2010

Written by Simon Whittaker

Buy to let portfolios may have decreased in value as new research showed that house prices were lower in July.

Figures from Nationwide found that the worth of property fell by 0.5 per cent this month compared with June.

Meanwhile, the yearly rate of inflation on the cost of a home saw a month-on-month decline from 8.7 per cent to 6.6 per cent.

"Many potential buyers still lack the confidence to purchase their first home or trade up when faced with uncertainty over future income and employment prospects," Martin Gahbauer, the bank's chief economist, commented.

The three-monthly rate of change, which is a stronger indicator of house price trends, dipped from 1.7 per cent in June to 1.3 per cent in July.

A recent survey conducted by the Land Registry found that the value of property rose last month by 0.1 per cent compared with May.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.