Market 'is bottoming out' - buy to let mortgages

28 April 2009

The residential property market may have reached its bottom, it has been claimed, something that could affect those seeking buy to let mortgages.

It comes after figures from HM Revenue & Customs showed that the amount of homes being sold for over £40,000 rose 39.5 per cent in March.

This is a sign that the "market has bottomed out and is slowly turning a corner", commented Liam Bailey, head of residential research at Knight Frank.

He noted that buyers can now get "decent" yields from their purchases due to the drop in prices over the last few months.

"For investors, the main reason for buying in the short-term is that income suddenly makes sense," Mr Bailey remarked.

He added that he does not expect house prices to rise this year, predicting that they will increase "marginally" in 2010.

The HM Revenue & Customs data revealed that during March, around 60,000 properties were exchanged for a value of over £40,000.

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