17 Sep

Low interest rates 'will lead people to invest in property'

Low interest rates 'will lead people to invest in property'

Low interest rates could lead people to consider investing their savings in property, one housing expert has asserted.

Gary Smith, president of the National Association of Estate Agents, which was founded in 1962, said that with interest rates at historically low levels, people with money will not be earning anything on their savings unless they choose to invest.

His comments follow remarks from the Ernst and Young Item Club that property prices are unlikely to return to the peak levels seen in autumn 2007 for at least another five years.

"They may well take the view that there is a potential for capital growth in bricks and mortar and in the mean time they can earn money by buying to let a property," stated Mr Smith.

This news comes after the Land Registry House Price Index recently revealed that property prices in July increased by 1.7 per cent to £155,885.
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