The UK buy to let market is all set to hit the ground as a forecast suggests that portfolios will rise by an average of 0.8% over the next 12 months. This is significant as property prices have been falling for the last two years and rental income has also seen a decline for the last 12 months or so.
However, differing information regarding property values in the UK exist, with some areas responding better than others. Rental income has started to level off and it looks like the worst is over. This is coming at a time when buy to let entrepreneurs have witnessed their property values collapse and many borrowing money on previous property acquisitions. It has led to a number of portfolios falling like a pack of cards.
The property sector for years has enjoyed the status of being very lucrative for a large number of UK business people but the economic downturn has soured things and left many bankrupt.
The positive interpretation of the 2010 property market goes against the prediction of many analysts who expect a further fall in this sector in the coming year. Only time will tell what to expect. Till then landlords can hope for the best.
