Mark Garner full time landlord and founder of www.LettingZone.com shares his market thoughts for 2010.
Last year Mark predicted base rates would go to 1% and below but we look at the market experts for their 2010 projections. Five Experts make 2010 projections.
Mark believes 2010 base rates will stay at 0.5% until after the General Election and then rates will increase to 1.25% by the end of the year. This means landlords who are currently enjoying tracker mortgages they took out a few years ago will be enjoying excellent cash flow for the next 12 months at least. This is good news as remortgaging still remains difficult with most lenders reluctant to lend.
With mortgage rates so low and more flexible working patterns means there will be fewer forced sellers of houses than previously thought; this means that with the ever growing
The net result of this Mark believes will be 2010 house price increases in the order of Retail Price Index + 1%. RPI is projected to be 3.5% by the end of 2010 so Mark believes house prices will be 4.5% higher by the end of 2010.
2010 looks like giving existing professional landlords good cashflow and good capital growth, the key to success in 2010 as always will be minimising your voids, managing your costs and providing tenants homes they are happy to live in. Rental guarantee products for new tenancies are certainly worth considering minimising your rent arrears.
Over the next 3 years the key decision Mark believes will be when landlords should start to fix in their current tracker mortgages as lenders lending premiums over the base rate will come down as their desire for new business increases.
Thank you for all your support and wishing everyone and your families a wonderful Xmas, New Year and a successful 2010.
Best wishes
Mark Garner
Founder of LettingZone
