Low interest rates make property a strong investment for 2011

Low interest rates make property a strong investment for 2011

The number of respondents benefiting from low interest rates is at a seven month high of 71%.

Results from the November confidence tracker survey carried out by the Worldwide Property Group reveal that the number of respondents benefiting from low interest rates is at a seven month high of 71%, which could explain why the company has recently seen increasing interest in property investment.

Interestingly, for the second month in a row, respondents remain equally divided between whether interest rates will rise or stay the same.

Of those that that did predict a rise, 93% believed the base rate would not exceed 1% within the next 12 months.This is excellent news as it is highly possible that current low interest rates have been a major catalyst for increasing interest in buy-to-let.

This is re-enforced by the fact that 84% of respondents are of the opinion that right now is a great time to invest in UK property.

Looking at overseas property, year on year comparisons have indicated that there has been a 26% increase in the number of respondents who believe now is a good time to make a foreign property purchase, and even more significantly a 21% increase in respondents who are actually considering making a foreign property purchase.

This month Spain continued to ride high as the most popular overseas location in which to buy with nearly a third of respondents saying they would consider a Spanish property purchase. The United States also ranked highly with one in five stating their interest in American property.

Kevin Wilkes, Managing Director of the Worldwide Property Group said:“Once again this survey reveals the confidence that people have in property. Even though it has faced strong headwinds the market has demonstrated remarkable resilience and surprising stability. Improved affordability in large part due to low interest rate levels has reignited interest in buying property in the UK, whilst around the world many locations such as Spain and the USA now offer rock bottom prices, leading to resurgence in their popularity with buyers.”“I fully anticipate that the increased interest in property will not only continue into next year but will increase substantially as the year progresses.”