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Market confidence grows sharply

Mortgage Solutions
Written By:
Posted:
September 28, 2009
Updated:
September 28, 2009

Investor confidence in the UK and overseas property markets has risen significantly, fuelled by reports that house prices have stabilised.

Research conducted by the Property Investor Show revealed that confidence among investors has increased by 43.3% in the last three months with 32% of respondents attributing the change in attitude to positive media reports.

The research also revealed that investors still have access to funds, with 32% having access to savings, 32.5% able to use equity from existing assets and a further 17.7% able to secure bank loans.

Nick Clark, managing director of the Property Investor Show, said the boost in confidence and renewed hunger for UK and overseas property has been signalled by reports of levelling house prices.

He added: “Savvy investors have begun to explore opportunities as they see property as a sound investment with strong returns.”

However, Ed Stansfield, property economist at Capital Economics, said it was premature to believe that investor confidence would increase to extremely high levels.

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He said: “There has been a pick-up in activity and interest levels in the property market in the last few months as people have realised that a meltdown of the financial system has not occurred. Investors should not be too confident in the resurgence of the market because although the foundations of improvement are there, there is still a long way to go.”