London, United Kingdom, November 12, 2008 --(PR.com
)-- A recent online survey of 9000 investors by Serliana Property Investment Consultants www.serliana.com has shown that 77% of property investors think that property prices will increase in the next 5 years.
In a market that is hugely affected by confidence, this new information provides evidence that investors are looking beyond the current issues in the housing market, which are fuelled by a lack of liquidity in the economy, and focusing more on the fundamentals of the UK property market which remain strong.
Despite the recent fall in housing prices, there are plenty of buyers looking to purchase property, the single most limiting factor has been the lack of available mortgage products. The demand of mortgages remains high but the supply has been restricted. Recent Bank of England interest rate cuts have barely had an impact on the Libor rate and even less of the savings have been passed on by the lender to the consumer.
The demand in property remains high but the supply of properties available will decline as the number of properties being completed by developers falls by 20% to 33,299. The government’s target of 2 million homes by 2016 seems highly unlikely if the trend continues.
Participants of the survey ranged from professional investors with multimillion pound portfolios to the novice investor with one buy to let residential property. Many of those surveyed have been investing for years and understand the market and expect to see an increase in property prices in the next five years. They continue to see residential property investment as a viable source of income for the future and expect to see a return over the long term as apposed to the short term.
A price increase in the next five years will largely depend on the lenders regaining confidence and offering better mortgage products with suitable rates. An increase in lending would eventually lead to an increase in property price.