Derivatives show residential values to only rise 9% by end of 2014

Landlords expecting a sharp rebound in house prices could be sadly disappointed according to the latest info coming out of the residential derivatives market.

These financial instruments used by institutions to manage risk and speculate on future values without the need to buy bricks and mortar show that the market expects the average house price as measured by the Halifax house price index to be only 9% higher by the end of 2014 than their value was in December 2009.

The near time forecast is not that promising either showing that prices will have risen a measly 1.5% in the two years to December 2011. Not much fat here to dine out on!

Landlord insurance