Instant Access Properties

For those looking at buying investment property, there are a couple of ways of seeing the current housing market. One way could be to suggest that, amid recent price falls, those looking to buy properties that will see their value appreciate will have to look very carefully for exceptions to the general rule. On the other hand, a lowering of prices could mean plenty of bargains for those who have the funds to invest.

Recent house price surveys have produced a mixed picture. Hometrack's survey earlier this week showed a 0.2 per cent fall - the fifth in a row - but also the first increase in new buyer registrations since last summer. The Land Registry statistics for England and Wales indicated a 0.9 per cent rise in prices in January, with only Wales seeing a fall in prices (down 0.3 per cent) and all English regions up.

What was notable in the English regions was that three of the top four performers in January had below-average annual inflation, with the north-west (two per cent) coming top ahead of London, which tied for second place with the east Midlands on 1.5 per cent despite the two regions having the highest and lowest annual inflation rates (13.1 per cent and 3.4 per cent respectively). The fourth-placed west midlands (up 1.3 per cent) had the second lowest annual inflation at 3.9 per cent.

This situation may suggest that January's figure owes too much a regional blip among commonly underperforming regions to be the basis of a solid revival. Of greater concern for those hoping to see prices rise may be today's Nationwide figures for February, which have shown a 0.5 per cent fall compared with a 0.3 per cent dip in January.

Also today, Bank of England figures showed that the number of home loan approvals in January of 74,000, while 2,000 up on December, was still trailing the 82,000 recorded in November. Reviewing the findings of both the Bank of England lending figures and Nationwide's house price statistics, the Royal Institution of Chartered Surveyors' senior economist Simon Rubinsohn said that in the former case the 74,000 approvals was still "close to historic lows", while regarding the latter he forecast the downward drift of house prices would continue, due to factors such as the increasing restrictions on loan-to-value rates squeezing first-time buyers.

All of this means that for the buyer hoping to find a bargain and who has the funds, cheaper property will not be hard to find. As for those looking to get their hands on something more likely to rise in value than other kinds of dwelling, the Land Registry figures noted that flats and maisonettes saw the greatest price inflation in the year to January 2008 at 7.6 per cent, compared with 6.4 per cent across the board. Notwithstanding fears that certain locations may have an oversupply of such homes, these may yet remain the best bet for investors looking to see appreciation in value.