Property optimists to be disappointed

Those landlord looking to 2013 for a general revival in property prices may be disappointed according to the latest research by Hometrack.

They estimate that house prices will fall on average by 1% next year as families who are facing financial woes will become increasingly reluctant to add to their debt levels and this will have a knock-on effect on house sales. This effect is not evenly spread as some areas such as London continue to buck the general trend (in 2012 20% of property postcodes recorded rising values).


The message for landlords looking to invest in the near year is that they can't bank on general rising capital prices to increase their returns in the short term.  Be selective on what and where you buy and make sure you understand the implications of the rental yield.

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