“Investors are returning to UK property in droves, encouraged by a greater number of affordable buy-to-let mortgage products and continued low returns on savings in the bank. Assetz is seeing 2,000 new investors on average every month, all eager to dip a toe into this burgeoning market.

“Although some landlords have seen minimal capital growth on their investments in the last few years, they look set to continue to benefit from excellent rental returns. Rents are currently between 10% and 20% higher than in 2006 with yields of 8% readily available. A shortage of property in the capital and other major cities such as Manchester, Liverpool and Leeds will continue to drive up rents, with supply unlikely to ever meet demand. This will continue to underpin the buy-to-let market in the coming years.”

The cost of renting a home in England and Wales increased in January, a survey has suggested.

The average rent rose by 0.1% last month from December, to £712 a month, according to LSL Property Services, which owns Your Move and Reeds Rains.

It is the first increase in January that the firm has ever seen.

Rents rose fastest in the West Midlands and South West, with the biggest declines being seen in Wales and the South East.

Rents increased 0.8% in London, with the average monthly rent in the capital now £1,032.

The cheapest average monthly rent was in the North East, at £512.

“The rental market burst back into life unseasonably early in January, with tenants on the move trying to take advantage of what is usually a quieter period for the rental market,” said David Newnes, director of LSL Property Services.

“The depth of the underlying demand sustained a higher level of competition for rental property during the Christmas period, preventing more severe falls in rents than we’d normally see during the period.”

Housing Market Predictions For 2012

- 21 buy to let mortgages available at 80% LTV or above

There are now six mortgage lenders offering more than 20 buy to let mortgages with LTVs up to 80%, according to data from Mortgage Flow, Mortgages for Business’s bespoke buy to let mortgage sourcing tool.

From December 2008 to May 2010 the highest achievable LTV for a buy to let mortgage was just 75%. The first sign that the tide was about to turn came from The Mortgage Works on 9th May 2010 when it introduced a limited range of products to 80% LTV. Investors then had to wait another nine months for another lender to do the same. On that occasion the entrant was Kensington who introduced a solitary product to a headline hitting 85% LTV. Kensington has since withdrawn from buy to let lending.

The six lenders that offer 80% LTV or above now are Kent Reliance Banking Services, Saffron Building Society, Leeds Building Society, Aldermore Mortgages and as of today Clydesdale Bank.

David Whittaker, managing director at Mortgages for Business, commented:

“This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy to let as more profitable than homeowner lending.  

“Between them, there is a good range of products on offer from two year discounted trackers to five year fixed rates. Some even come with flat arrangement fees which really start to make sense for investors looking to borrow larger sums.”

Julie – General Practitioner (Now Personal Property Agent)

“All the holes in my knowledge have been filled in, a fantastic group of people, I know PPA will deliver. I will not be investing in any other property courses, there is no comparison. it sounds a bit evangelistic really, and I am not quite like that, I do feel that my life will change going forward. I have done other property courses before and floundered afterwards, at best you could have described my past successes at the low end of mediocrity. One of the best decisions I have made is to join Personal Property Agent.”

Nick – MD Debt Management Company (Now Personal Property Agent)

“I have been bumbling along without structure for a long time, one of the main reasons I got involved was the quality of the Directors and the brands they have created. PPA has far exceeded my expectations; I have structure, a professional image and now working with a forward thinking company. If you are thing about joining, do it.”

Peter – Chartered Surveyor (Now Personal Property Agent)

“I’ve been on seminars and courses about creative property techniques. The minute I saw the PPA package and the fact it provided all the bits that were missing I knew I needed to be a part of that. The course showed me new things to put deals together and gain business. I am looking forward to going into more depth and different ideas.”

Mark – Investor and Landlord (Now Personal Property Agent)

“I joined PPA because I wanted to change the way my life was going, this is the best decision I have ever made. Sean and Stewart are absolute top notch, the knowledge we have been given is absolutely first rate, I can’t say enough about it. The tools the guys have put together to develop this business cross country are profound, life changing stuff. Jump onboard if you get the chance.”

Andy – IT Engineer (Now Personal Property Agent)

“I joined PPA because I was looking for excellent structure and support to get me out of my comfort zone, equip me, educate me and prepare me to fly with my growing determination to develop a successful property business. I am absolutely confident I have got where I wanted to be, highly recommended excellent trainers, brilliant people. This is streets ahead of anything the competition is doing.”

Doreen – Investor (Now Personal Property Agent)

“I found the PPA induction course phenomenal, excellent. Personal Property Agent as a business is absolutely fantastic. One of the things I like that it offers is new ideas and strategies and is Internet based. I am now ooking forward now to doing my own business, an excellent extension to my existing property endeavours. I would thoroughly recommend it to anyone, a truly fantastic opportunity.”

Aimee – Life Insurance Agent (Now Personal Property Agent)

Having had little to no experience in property and sales I was a bit daunted by the prospect of becoming a Personal Property Agent. However the training and support I received was second to none. I learnt everything I needed to make a success from property and the confidence to sell this fantastic service. Within two weeks of completing the induction course I had secured my first instruction! It’s easy to speak to potential clients about the service we offer because it’s so much better than anything else out there. Personal Property Agent provides you with all the tools, resources, knowledge and support and knowing that I have all of that behind me has given me the boost to try something I had never done before and to make it work!

Shay – Lettings Agent (Now Personal Property Agent)

I have been a letting agent for 3 years, a former estate agent and involved in property for the past 20 years at one level or another. I can say that in today’s climate and giving my background that the Personal Property Agent is without doubt the greatest opportunity I have come across to develop myself and make a success from property. Nothing touches it, I thought I knew everything there was to know about property, these guys operate at another level. It is the best decision I have made in business, I do not say that lightly. After a really difficult time in the property game over the last 3 I’ve got my mojo back and I am definitely back in the game!!

Tim – Mortgage Broker IFA (Now Personal Property Agent)

“As I already run a mortgage practice it seemed a natural extension of my business to add estate agency to my revenue streams. My first thought was that it would be a useful addition to what I already do, however, having had the training and since going live, I realise that being a Personal Property Agent will quickly become the mainstay of my business and income, the other services that I already offer will support it. The clients that I have secured so far have all been positive about the service that we have provided compared to what they have experienced with the traditional method of sale. This is a business really going somewhere.”

Justin – Ex Estate Agent (Now Personal Property Agent)

“Having worked in Estate Agency in the late 90′s/early 00′s, I made a change to working within the finance industry, but never lost the itch for the property market. Having already expanded my finance business to include sourcing investment property for clients who wanted to establish or expand their own property portfolio, it made sense to go back to the grass roots of property, but with a more 21st century slant. Having already spoken to and secured clients under the PPA banner, I am impressed at how people can see the value of the service and how it differs to the dying breed of ‘high street’ agents.”

Mike – Aircraft Engineer (Now Personal Property Agent)

“I am sold because everything is here that I know I need to springboard my slow growing property business to the next level. I know of nothing else out there which offers the tools, the leads, the websites, the training and the genuine support of two dynamic property people. This is a one time opportunity for me to make my property business a real success and I am grasping it with both hands while I have the chance.”

Scotland, where average property values now stand at £164,844, outperformed the rest of Britain in 2011, recording an average increase of 6.73%. Average home values fell across England by 0.75% (£1,719) and finished the year at £228,926, whilst the average property in Wales is now worth £153,826, down £172 (0.11%) on one year ago.

In England, property values have risen over the past 12 months in London the South East whilst falling substantially in the North. The average home in London is now worth £416,890 up £9,283 (2.28%) on one year ago. The North East was the worst performing region over the past year with average house prices falling £9,596 (5.77%) to £156,659. (See Table 1)

Wigan tops the list of best performing cities over the last year, with property values having climbed 5.62% (£7,057). In contrast, homeowners in Newcastle saw an average decline in property prices of 5.5% (£9,650) over 2011. (See Tables 2 and 3)

Nicholas Leeming of Zoopla.co.uk commented: “National statistics on the housing market can mask differing fortunes in different parts of the country. Londoners continue to see the market go from strength to strength with high demand for a limited number of properties boosting house prices. However, for areas such as the North East where the local economy has suffered more than most, it’s a different story. 2012 does not show much sign of being markedly different to 2011, however, if the overall economy starts to show signs of strength this will filter quickly through to the property market.”

·National house price growth of 3% forecast in 2012

·Regional and local variations set to deepen, with unemployment being the key factor

·New housing supply will remain historically low

·Rents will continue upwards path, increasing by approximately 5% annually

·Mortgage market will remain limited as a result of Eurozone turmoil

Stuart Law, Chief Executive of Assetz, examines the outlook for the UK housing market:

“The property market in 2012 is likely to continue in a similar vein as it has both this year and last, with relatively flat house prices buoyed overall by a strong performance in key locations, particularly London and upmarket commuter hotspots in the south east. I expect national house prices to end this year just into positive territory at around 2% versus our original 5% forecast, as a result of the faster than expected public sector job losses and the Eurozone crisis. We expect that this will be followed by an increase in values of around 3% in 2012, with many parts of the country seeing no growth or marginal price falls.

“The quantitative easing programme announced in October will introduce further liquidity to the markets as we head into next year and support real asset prices over the short to medium term. However, it is too soon to see the effect of the Eurozone crisis which will continue to impact the markets, limit the amount UK banks are able to lend and, perhaps most importantly, stifle consumer confidence.

“In popular residential areas where there is good infrastructure and a sound employment market, buyer demand will continue to outstrip supply. Areas which are reliant on manufacturing or the public sector, which are struggling with high levels of unemployment, will see very low transaction levels next year and a fall in values of as much as 5%.

“Interest rates are likely to remain low over the medium term, keeping tracker mortgages an attractive option for homeowners.

“We will hopefully see a continued modest improvement in the first time buyer market with a greater number of higher loan to value mortgage products and shared equity schemes becoming available. We are also likely to see a continuation of parents opting to help their children onto the property ladder instead of keeping money in the bank, where they are seeing little return on their savings.

“High levels of activity in the buy to let sector will continue to underpin the market next year, with landlords returning in considerable numbers as well as new investors seeking a safe home for their cash that will also generate a decent income. Our research shows that over three quarters of existing UK property investors are considering buying additional investment properties in 2012. Rents will continue to grow strongly, in the region of +5% next year, as restricted mortgage lending and poor employment prospects has left a whole generation of potential first time buyers with little prospect of buying a home. Consequently landlords are set to benefit from another year of strong yields, albeit alongside only modest capital growth.”

“Overall, house prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households’ finances. The UK average price now is only marginally lower than at the end of 2010. In addition, activity has recently shown a few signs of strengthening a little. We expect the market to remain broadly unchanged in terms of both prices and sales over the coming few months as demand and supply conditions alter little.”

annual house price growth into positive territory for the first time in six months. The price of a typical home was 0.8% higher than October 2010.

“Given the challenging economic backdrop, October’s data is encouraging, but it doesn’t fundamentally change the picture of a housing market that is treading water. Property transaction levels remain subdued, and prices essentially flat compared to last year.

“The outlook remains uncertain, but with the UK economic recovery expected to remain sluggish, house price growth is likely to remain soft in the period ahead, with prices moving sideways or drifting modestly lower over the next twelve months.”

Why Now Is a Great Time to Buy UK Property