House prices set to become more stable - forecast

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In this post, I wish to publish something about my industry. Any comments are welcome.

House prices have slipped heavily since the summer, offering opportunities for landlords with buy to let insurance to purchase more property at lower prices.

But those falls could soon be at an end, according to the latest Rightmove Consumer House Price Forecast.

It found that the public are increasingly hopeful the unstable housing market will start to calm down for the rest of 2011.

Two in five UK home-movers forecast that average UK house prices will remain around the same level in 12 months’ time.

This is the fifth consecutive quarterly rise in those expressing this view and, at 38%, is the highest level figure Rightmove has recorded.

Director Miles Shipside said: "There is clearly a growing trend towards consumers believing prices will be more or less the same in 12 months’ time, with around four in 10 people now of that view.

"In spite of 2010 being something of a roller-coaster ride for the property market, asking prices ended the year broadly flat.

"Prices rose consistently throughout the first half of the year though we measured some big falls in five of the final six months. This left asking prices just 0.4% up year-on-year and it is perhaps this levelling out effect which has encouraged a growing proportion of the public that we are set for an element of house price stability in 2011.

"However, we don’t yet know what the twists and turns of interest rates and repossessions may bring this year, and so it will very be interesting to see how home-movers’ confidence is affected if the 2011 housing market doesn’t turn out to be an easy ride."

Falling property prices are a mixed blessing for landlords - benefiting those wishing to buy more stock but lowering the value of their existing portfolios.

Lower prices also make it easier for other people to get on the housing ladder, thus easing rental demand.

However, something which can benefit all landlords is cheap landlords insurance by offering savings to home owners who rent out their property.