Property investors might want to turn their attentions to buy to let property as research suggests that the property market is starting to cool.
Rightmove’s monthly house price index reported that fewer sellers now feel as though they have the upper hand, with the price of property coming to market down £8,703 over the last month.
There has been a 3.3 per cent drop in new seller asking prices, reducing the annual rate of increase from 8.5 per cent in November to seven per cent.
This looks set to continue its descent in 2015, with Rightmove predicting new seller asking prices to post in the range of four and five per cent.
Miles Shipside, Rightmove director and housing market analyst, said: “Whilst a near £9,000 drop is the biggest ever reduction in the price of newly marketed property compared to the month before and a sign of a market continuing to cool, a fall is not unexpected in December.
“Though sellers are fewer in number at this time of year, those that do come to market are often keener to sell so price lower in a bid to stand out.”
Consequently, the story of 2014 is still one of recovery and confidence is largely increasing. However, investors may be advised to put their money in buy to let property, which is continuing to go from strength to strength.
Demand for rental property is growing unabated and by investing in buy to let a strong income is guaranteed for the future.
Conversely, it is expected that sellers and agents will need to work harder in 2015 if they want to secure a sale, as the market cools.
However, the Rightmove figures may not tell the whole story and other research has shown rising house prices for 2014 as a whole, driven by gains in London. Indeed, the capital is refusing to slow down and values are continuing to skyrocket.