To sell or not to sell?

There is always a lot of speculation about the property market – just check any tabloid and you’ll be sure to see an article predicting (alternately) plunging property prices and doom, or the usual ‘1 bed flat to cost £1M by 2020’ stories.

The truth is, nobody can say for sure what will happen, an educated guess is the best anybody can really hope for.

More landlords than ever are currently considering selling due to a combination of high sale prices, reducing tax incentives and a slow down in the rate of rent increase. High property values give the impression of reducing yields, 4% to 5% per year now looks pretty good a few years ago anything less than 10% would be shunned.

Many landlords have decided against selling, not necessarily because they think it is the wrong move, more because they don’t know what to do with funds when they do. With bank rates at 0.25% and the stock market high, but shaky where else can you comfortably get even a 5% return on capital? 

For now at least, property seems to many to be a safe, if unexciting investment.