Building societies 'confident about buy-to-let'

Building society chiefs remain optimistic about 2007's housing market, with the buy-to-let sector expected to stay strong, new research indicates.

About 95 per cent of the building society bosses questioned by the Building Societies Association (BSA) said that they were confident about the year ahead and are predicting similar levels of lending to that seen in 2006.

Nearly two-thirds say that they think building society net mortgage advances will rise, while house price inflation of 5.5 per cent is predicted for the year.

The association reported that buy-to-let had been given "the thumbs up" with 79 per cent of chief executive officers (CEOs) saying that they think the market is sustainable, although there were concerns about city centre developments becoming saturated.

BSA director general Adrian Coles said that in terms of the economy, CEOs are confident that while the housing market could be slowing, this will not lead to any kind of crash.

He commented: "Indeed, they predict that business will continue to be steady, that the buy-to-let market is sustainable and that house prices will still rise but at a more realistic rate."

The latest figures from the organisation show that building society gross advances reached £3,772 million in April 2007, compared with £3,512 million in April 2006.

Lettings market "buoyant" in West Midlands town

The property lettings market in Walsall is "buoyant" after regeneration in the town, according to one expert.

Stuart Stringer, a negotiator for estate agency Edwards Moore, said that relatively low property prices in the West Midlands town made it first-time buyer friendly, while the lettings market is moving along "fairly steadily" at the same time.

Regeneration in the old part of the town has led to a lot of new two-bedroom apartments being built, he stated.

Mr Stringer said that the areas that are convenient for those wanting to commute into nearby Birmingham are the most sought after by property buyers.

Aldridge, in the Walsall borough, as well as the Park Hall Road estate closer into town, are proving to be among the most popular, he explained.

He commented: "Compared with down south, obviously we're a lot cheaper. You can get...a two-bed flat for £90,000 in a fairly decent area."

The latest figures from the Land Registry show that the typical home price in Walsall was £131,328 in March, with the value of a home rising by 1.5 per cent during the month.

Investors to buy new east London properties

The asking prices of new homes in inner London rose by 14 per cent last year, a new survey claims.

According to the most recent London Residential Development Survey from Savills, the highest-priced units in and around Knightsbridge sold for up to £2,500 per square foot due to high demand from international and City buyers.

The report claimed that Canary Wharf is performing as a "prime residential area" and the Central Docklands area has moved up the rankings with some properties selling for £1,000 per square foot or more.

Savills said that at the end of last year, the number of new homes on the market was 68 per cent lower than at the same time in 2005.

However, 2007 is set to see an increased supply of new homes, peaking in 2009 in the east of the city before the Olympic Games in 2012, it stated.

Jim Ward of Savills commented: "Much of this new supply in the east will be taken up by both investors and owner-occupiers, as employment driven demand spills out from more established markets."

Estate agent Hamptons International said in March that the previous 12 months had seen "staggering" increases in rental prices, of up to 18 per cent in some areas.


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