Young Group Reports Stabilization of UK Property Market

The latest data, presented by the Young Group – the portfolio management company – suggests that the UK property market will start to stabilize in the course of the next year. The latest index results, analyzed by the company, reveal that property prices will start to level off and to increase subsequently in the year of 2010. According to the company, the stabilization in property market will lead to a return of investors, particularly in the buy to let sector. The survey, conducted by the Group in the beginning of the second quarter of 2009 revealed that more and more property investors are planning to purchase houses and apartments in the United Kingdom during 2010. It is interesting to note that 52% of those surveyed claimed that their location of choice for UK property is London. The figure represents a 12% increase on the number of property investors, who were willing to purchase property in London during the first quarter of 2009. Neil Young, who takes the post of chief executive officer at the Young Group, claimed that the positive trend on the UK property market continues due to the fact that the increasing number of investors is willing to expand their portfolios of UK residential property. He added that it is still unclear whether the rise in demand, property prices and market stability will translate into actual transaction or will be “killed” by the lack of UK mortgage lending. It is interesting to note that the survey by the Young Company is being carried out on a quarterly basis in order to examine the feelings of property investors towards the housing market. The survey is mainly targeted at buy to let property investors and surveys approximately 500 people, holding residential properties across the UK.