BMV property investors all over the UK will be delighted to hear that property prices increased by 5.9% last year according to Nationwide. However, they are still 12.2% lower than October 2007 levels. Many property market experts have said they were surprised by the outcome, but believe 2010 probably will not be as good and in general the market will be pretty stagnant.

Although this is in stark contrast to the 15.9% fall experienced in 2008. Nationwide said that prices improved in 8 of the months in 2009. The average cost of a home in the UK is now £162,013.

UK BMV property buyers who bought a property in the last 6 months have probably been relying on rental income, but it seems you could soon start to make some money from the increase in value as well, if 2009 is anything to go by. The recession has made us all more prudent and savvy investors as it is now more important than ever to do your homework and look long term. Hopefully this will continue and people who over leveraged their portfolios back in 2008 have learnt their lesson.

In 2010 that interest rates will hopefully remain low which should help mortgage borrowers. The future of the property market is largely uncertain, but as long unemployment rates don’t grow and public sentiment in the economy is not damaged further large dips in the UK property market should be avoided.

Traditionally speaking January is a quiet period for property investing. But this does not mean you shouldn’t look. There is less competition around for one. If you are thinking of buying a BMV property in the North East of England we have lots of great deals on offer.

Related posts:

1. The Property Market in the New Year
2. Is the UK Housing Market Recovering?
3. 2009 was a good year for below market value investing
4. Mortgage Market Problems Create Opportunities for Property Investors
5. Seasonal Impact on Property Investment