House prices may be on the wane, but for the canny buy-to-let investor that is not necessarily a bad thing.
According to the latest confidence tracker from property investment consultancy 77.5 per cent are undaunted by current interest rates, a sizeable ten per cent increase on the figure recorded at the end of 2007.
Seventy-one per cent of investors said they thought it was a good time to buy more property, although this was down on February’s figure of 80 per cent.
However, when examining their views on interest rate levels, it’s easy to see why investors are optimistic.
At 70 per cent, the large majority reckon that rates will drop again during 2008, with 57.1 per cent predicting a half a point cut over this time.
To this end, it appears that investors are taking a pragmatic approach to buying more property, as cheaper deals down the line would ultimately net them higher returns.
“The vast majority of professional investors are looking to expand their property portfolios this year, with confidence remaining high.
“Demand for rental accomodation is still driving the market, pushing rents up and a record 65 per cent of investors say they are no longer feeling the pinch of higher interest rates.
“And as the cuts to the base rate set in fully, with more expected, the desire for buy to let property is unlikely to decline.”