Property still a good investment

Date:Monday 28th September 2009
Author: Max Freedman has seen an increase in mortgage deal enquiries, which it claims is because property is still a sound investment.

Keshav Thukaram, managing director of the buy-to-let website, responded to the the release of the August House Price Index which indicated a monthly drop of 0.1 per cent to an average value of £155,968.

He pointed out that the buy-to-let market is in fine shape though, because it is a long-term investment which looks good when compared to alternatives.

Although he is mindful of the risks posed by tenant unemployment and rent arrears, he commented that he is positive about the future of the sector.

Mr Thukaram explained: "It's safe to say that with some sound financial planning and with rent guarantee insurance in place, property is still an attractive investment."

He pointed out that are still restrictions to mortgage lending at the moment and that Land Registry figures will always lag behind the market because they are based on completed purchases.