Over the last few months several different events have affected the market and the way some people think about whether property investment.



First off there have been five interest rate rises since last summer. That's pushed the cost of mortgages up for many people, and for those coming out of fixed rate deals, has pushed their monthly outgoings up considerably.

Of course the higher mortgage payments go, the harder it is for wannabe landlords to make a good monthly income from their property investment. Monthly rents can't go up as fast as mortgage payments do. And with property tax shaving profits when they sell the house, a reduction in monthly income makes investing less attractive.

Next there was the so-called 'credit crunch' in America, relating to the country's sub prime mortgage market. These are mortgages offered to borrowers without great credit history. Rising interest rates meant a large number of foreclosures, putting some US banks out of business. The crisis started to affect the global credit market in July this year and hasn't yet been resolved.

The most immediate problem seen here in the UK was what happened to Northern Rock in September. It had trouble borrowing from its usual sources because of the lack of credit available, and was forced to ask the Bank of England for an emergency loan.

The resulting panic saw long queues outside the bank's branches, with ?1 billion withdrawn in one day alone.

Other issues have affected the market and made property investment seem a little less attractive.

House price growth is widely being reported as slowing down (although many experts agree that prices are still growing in some areas). And the introduction of the Home Information Packs (HIPs) for three and four bedroomed properties has stopped some people putting their house up for sale, causing a slight reduction in the number of properties available.

Despite all these problems, Leaders is adamant that property investment is still a good way to make money in the long-term.

It says rising interest rates and the other factors are not affecting investors who have settled in for a pay off down the line.

And the reasons for that confidence are clear: High house prices, rising rental demand and increasing rental income.

The company says that a recent report showed that the UK is building 55,000 fewer homes a year than are needed. It believes shortages like that against strong demand make it unlikely that prices will drop back or slow down in anything but the immediate short-term.

It's also likely that people will continue to struggle to get their foot on the first rung of the property ladder, which is also good for landlords with a property investment.

Leaders also points to further demand for housing coming from overseas. Research from the Office for National Statistics reveals the number of overseas nationals who entered the UK and requested a National Insurance number was 713,000 between 2006 and 2007.

That figures is up more than 50,000 on the year before. And of course most of these people need property to rent.

Leaders added that it has analysed renting trends seen at its 31 branches, and there is clear evidence that tenants reaching the end of their tenancies are extending, and new properties on the letting market are bring rented quickly.

All of which it believes, should help to reassure people that property investment is still very much viable in the long-term.

For further information please visit our website at http://www.propertytoday.co.uk or ring us on 01733 427177.