11-03-2008
Buy-to-let purchasers can negotiate lower prices
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Potential property investors could be using the current market conditions to negotiate lower prices, it has been suggested.
The most recent housing market survey by the Royal Institution of Chartered Surveyors (Rics) has noted a significant drop in house prices during February.
It also suggested stock piles rose to levels not witnessed for around ten years.
Ian Perry, Rics spokesperson, said market confidence is "clearly" affecting house prices.
He highlighted the combination of a lack of available finance and weakening demand as a factor that is causing capital values to drop slowly.
"While there is very little new supply coming onto the market, it is unlikely that there will be significant price drops in the short-term," Mr Perry predicted.
However, buy-to-let mortgage holders and other potential buyers could use the situation to their advantage.
Mr Perry said: "The buildup of unsold stocks will encourage buyers to negotiate lower asking prices."
Recent research by Your Move suggested buy-to-let mortgage holders can currently benefit from high demand by tenants.