Investment Property News - Bueno Investments Limited

New Government figures suggest the housing market is cooling “but not collapsing”, an economist has said.

Howard Archer, chief UK and European economist at Global Insight, made the claim as data from the Department for Communities and Local Government revealed the average cost of a home increased by 1.7% during January.

It means the value of a typical property now stands at £221,758.

But the figures also reveal the impact of the credit crunch is continuing to affect the sector as the annual rate of house price growth fell to 8% in the year to the end of January - the lowest figure for 16 months.

Mr Archer said: "Taking an overall view of the housing market, including the latest surveys by the Nationwide and the Halifax, it appears that house prices are cooling markedly but not collapsing at this stage.”

Ed Stansfield, property economist at Capital Economics, added: "With lending standards continuing to tighten and the economy poised for a significant slowdown, we do not expect interest rate cuts to revive the housing market.”

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

http://www.communities.gov.uk/corporate/ (Department for Communities and Local Government)