Throughout the past couple of years the housing market has declined rapidly, which has had both pros and cons for landlords. Even though it means that landlords can now afford to add more properties to their portfolios, it also means that the properties they already own have greatly depreciated in value, so their investments are currently worth less than they were a few years ago. However, it has been reported today that the housing market has actually flattened this January, which is the first time this has happened in two years.
Reports have shown that housing prices were flat during January in the East Midlands, the North West, the South East and the West Midlands. Furthermore, only sixteen per cent of post codes saw a decrease in value in January, which is down from twenty seven per cent the previous year. Discussing the flattening of the housing market, property analysists Hometrack said: “The housing market looks to be in slightly better shape than at the start of the previous two years. Agents are reporting sellers seeking valuations but waiting until the outlook becomes clearer before putting their home on the market.”
“Five years into the downturn and with the sales of homes still running at less than one million a year, there is a steady accumulation of pent-up demand to move. The spring housing market will be a key test of whether UK households are willing to act upon a slowly improving sense of optimism.” For landlords that are planning on investing in housing in the upcoming months, it is important to invest in landlord or buy-to-let insurance in order to make sure your investment is protected, especially as Annalisa Piazza from Newedge Strategy have warned that the market may not stay the same throughout the whole year.
“All in all, the Hometrack survey depicted a quite sluggish picture for the UK housing market at the start of the year,” said Ms Piazza. “That said, other surveys were less discouraging, pointing to some stabilisation in the UK housing market going into 2013. The overall picture remains mixed.”