There are good reasons in both the short and long-terms for investing in property at present, it has been suggested.
Commenting that the market has bottomed out and is slowly turning a corner, head of residential research at estate agency Knight Frank Liam Bailey predicted that the recovery is likely to be a gradual one due to the recession continuing for another year.
He added that "for investors, the main reason for buying in the short term is [that] income suddenly makes sense", noting that price falls mean higher yields.
At the same time, Mr Bailey noted, the "next two or three years" will bring significant capital growth back, enabling investors to make a good profit should they then sell properties on.
Mr Bailey made his comments in response to figures from HM Revenue & Customs this week showing that the number of transactions for homes worth over £40,000 went up by 43 per cent between February and March.
Published on: April 24, 2009