Prices 'will drop in city centres' - buy to let mortgages

10 March 2009

Areas in which there is an "oversupply" of properties will see a drop in prices over the coming months, it has been predicted.

Russell Taylor, the director of real estate firm DTZ Residential, explained that homes will be cheaper in places where there are plenty on the market.

"Good quality properties in good locations will still achieve their asking price … areas of oversupply, such as regional city centres, will be the ones that will see prices fall," he remarked.

Those with buy to let mortgages may wish to take note of his comments if they are looking to capitalise on the current situation in the housing market.

Mr Taylor noted that there has been a rise in the level of properties for sale, but added that it is unclear whether this is due to a boost in confidence, or sellers becoming more "desperate".

However, the amount of house sales agreed did increase last month, according to Hometrack.

Sales in February rose 35.9 per cent, compared to a five per cent fall in the previous month.