Financial pressures on serious investors are lifting, according to Property for Life…

According to Property for Life’s monthly investor confidence tracker, a record 64% of people say they are no longer feeling the pinch of interest rates.

This figure marks a 16% increase since January. Consequently, the proportion of investors who believe that now is a good time to invest in the property market is also at its highest level, having increased to almost 80%.

Increased desire to buy

This bullish confidence follows the quarter percent drops in interest rates at the end of 2007 and last month. Investors are now capitalising on opportunities in the current market, where strong tenant demand and increasing rents has facilitated the desire to buy.

David Austin, managing director of Property for Life, comments: “Having waited several months for some respite, the two drops in the base rate are finally being passed from lenders to investors, demonstrated by the large reduction in those claiming to feel a pinch on their finances.

“The position of buy-to-let investors has been bolstered by those with high capital deposits, allowing them to take low loan to value mortgages and making them a safer bet for lenders than other borrowers.  The high level of confidence in the market is important and is likely to be long lasting if we see another base rate cut in the next few months.”

Market ‘still adjusting’

The tracker also reveals that over two thirds of investors expect house prices to stay the same over the next twelve months, a jump from 17% last month, with fewer people expecting them to decrease.

David Austin continues: “The fact that investors believe that house prices will remain more or less stable this year is encouraging. Far from being concerned about a slower market, investors are keen to buy while prices remain at their current level.

Though the housing market is still adjusting, the data from this month’s survey and the CML figures released this week, demonstrate that the buy-to-let sector is thriving and is likely to underpin the property market this year.”