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UK buy to let market faces unknown future

According to the Royal Institution of Chartered Surveyors, the global credit crunch now in place will make it more difficult for landlords to purchase property. The country is currently seeing a boom in the buy to let market, as investors snatch up any and all available housing.

Now that mortgage loans are more difficult to get, this may make it more difficult for investors to continue to buy. According to RICS, the buy to let market, and the landlords in it, is partially to blame for the rise in house prices and the restricting supply available to first home buyers.

Still, with the Bank of England holding the key lending rate at 5.25 per cent, the housing sector here is less likely to be hurt than other sectors.

As reported by My Finances.co.uk, Neil Young who is chief executive of the Young Group in the UK, "Investors who approach property investment in the same way that they would any other asset class will be looking at the overall trend in interest rates rather than short term fluctuations."

He also added, "Although the current conditions make it more arduous and time consuming for those seeking funds for property purchase, the shake out in the mortgage market will result in a stronger and more robust market. We are already seeing sense coming back to the market."

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