Property market ripe for investment

With house prices increasing and signs of a recovery in the private rented sector now could be a good time to consider investing in property.

The latest surveys by Halifax, Nationwide and RICS (Royal Institute of Chartered Surveyors) all show house prices are rising. These findings, combined with figures released by the Council of Mortgage Lenders revealing mortgages for home purchases have risen annually for the first time since 2007, indicate that confidence is returning to the market.

According to Northern Ireland’s top lettings agency Pinkerton Murray the stabilisation in the residential sales market is good news for buy-to-let investors.

“As the residential sales market starts to pick up more people are opting to sell their homes rather than rent them which means the number of properties available to tenants is falling and as a result rental prices are starting to recover,” said Managing Director Victoria Pinkerton.

“Owing to low inflation and low interest rates bank and building society savings accounts aren’t providing a good return for investors. But as we have seen in the past, those who invest in the property market can reap the long-term benefits.

“However there are risks associated as with any investment opportunity and perhaps those most at risk of getting their fingers burnt are ‘accidental’ landlords who have opted to rent their properties rather than sell while they wait for the effects of the recession to subside.”

And although recent surveys show the trend of these ‘accidental’ landlords appears to be diminishing, according to ARLA (Association of Residential Letting Agents) there is still a huge number out there who need to understand the potential risks and the importance of choosing a regulated and qualified letting agent.

Pinkerton Murray in Bangor recently won the award for Best Letting Agent in Northern Ireland in the prestigious UK Estate Agent & Letting Agent Awards 2009 for the second year running.

“We can help new as well as more experienced landlords get the best return on their investment. Today’s tenants are very selective; they want good-quality accommodation that offers value for money and in the right location,” explained Victoria.

“Letting a property using an agent could really make a difference to how quickly you let your property and how much rent you can charge. We have a database of potential tenants and have been an approved agent for HomeLet, the UK’s leading provider of tenant referencing and Rent Guarantee products and services, since 2006.

“As well as obtaining tenant references we can provide HomeLet’s Rent Guarantee insurance which is essential in the current economic climate. Not only will it cover rental payments for up to 12 months but it also offers landlords total peace of mind.”