According to the Land Registry, house prices in January were down by 15.1% since the same time last year. Every region in England and Wales has seen property prices fall by at least 12% in the last year. Buyers are waiting until they see that the market has bottomed out, and with the waiting, house prices are expected to continue falling for the next few months. There are however signs that the freefall may be easing and soon may have reached the bottom.

Mortgage availability is beginning to see change. In January, mortgage approvals held steady at 31,000. Although this is half of what it was last year, they have averaged 31,000 for the last six months. Mortgage lenders typically want a deposit of 20% of the purchase price which is a hefty sum to secure. Saving for a deposit takes time and in this time house prices fall. However, Northern Rock will soon begin to offer some 90% mortgages. The Bank of England is expected to lower base rates again and is also likely to increase the amount of money in the British economy, both of which will improve the supply of funds for mortgages.

The current low interest rates, although will not lead to a sudden housing market revival, do make loans more affordable which will be another positive support for both new and existing borrowers. According to Halifax, mortgage payments have fallen from 31% of gross earnings for a new borrower in the first half of 2008 to an estimated 21% in January 2009. The house price to average earnings ratio has decreased to an estimated 4.48 in December 2008 from a peak of 5.84 in July 2007; a fall of 23%. The long-term average is 4.0. Potential buyers are noticing the opportunity: according to the Royal Institution for Chartered Surveyors enquiries from new buyers rose in January 2009 for the third successive month.

Of course, there continues to be pressure on incomes with rising unemployment and the negative impact of the turbulent financial markets on the availability of mortgage finance, but the update is that there are signs that the freefall on house prices and drought of mortgage availability is easing. As such, it could be wise to buy before house prices reach bottom as with low prices, low interest rates and increased mortgage availability an eventual recovering economy could bring house prices to rebound sharply.

The UK has a lot to offer with a history tracing back to thousands of years and a multicultural society as well as having some of the most breathtaking tourist and countryside destinations in the world. One of the top 5 economies of the globe, the average trend for its economy has been on a rise for several decades. Although historically the housing market has been quite volatile, a lot of residents consider their home as a long-term investment. The country has a net immigration policy that should draw in more prospective home buyers, keeping the demand somewhat high.

The total feels payable when purchasing a property for sale in the UK are among the lowest globally and sum up between 3 and 5 percent for a property that costs under 250,000 pounds. The average fees for a first-time buyer are about 6,000 pounds, which already involves conveyancing and other solicitor’s fees, stamp duty, survey fee and removals. The majority of fees are computed as a percentage of the cost of a property, thus the more costly a property, the more expensive the fees. Keep in mind that a number of fees are linked to a mortgage and if you’re a cash buyer your fees will be at a reduced cost.

What’s considered a good location is changing in the country. Don’t let your apprehensions get in the way just because you wouldn’t personally live in a particular area. Going for locations with a strong capital growth is what’s essential for success in the property business.

You should then study and fully comprehend your rental market. The rental market in the country is quite strong, but be cautious if buying in big blocks of apartments exclusively sold to investors. Keep in mind that transaction expenses can considerably cut down your returns. Stamp duty will slash your overall yield, so if you buy under 125,000 pounds, there will be no stamp duty. One of the major advantages for Irish purchasers buying in the UK is the reduced stamp duty.

Purchasing a home or property is one of the biggest financial decisions you will be making in your life. There is no ‘right’ strategy when it comes to buying investment property in the United Kingdom. A plan that may be the most ideal is a plan rooted in your long-term aims along with your financial situation.