Financial News

• Brown dismisses housing crisis fears (09 04 2008 10:15)
• Mortgage hope offered by bank (09 04 2008 10:15)
• Consumer morale 'falls again' (09 04 2008 10:15)
• Bristol & West withdraws deals (09 04 2008 10:15)
• Retirees feel 'unhappy due to no longer working' (09 04 2008 10:15)
• Severn Trent to be fined £36m (08 04 2008 04:15)
• Brown to announce first time buyers help (08 04 2008 04:15)
• UK bank details 'for sale by thieves' (08 04 2008 04:15)
• Last 100% mortgage to disappear (08 04 2008 04:15)
• High earners 'shut out of market' (08 04 2008 04:15)

Subscribe!

Housing sector in UK 'will recover'

The property market in the UK will recover in the second half of the year, insurance and investments firm Legal & General said yesterday.

In its latest monthly Fundamentals report, the firm said that it was advising investors to move into the property market, as future returns promised to be big.

The domestic housing sector has fallen victim to the global credit crunch in recent months - with the general loss of cheap loans leading to many lenders having trouble with raising money.

This has led to many of the most attractive high street home loans being withdrawn by nervous mortgage firms, eroding public confidence.

Accordingly, house price inflation has been driven down - leading to fears that properties will lose value in months to come.

Nevertheless, head of Performance Analysis at Legal & General Property Rob Martin suggested that the market would weather the storm later in 2008.

"The case for investing in property remains a strong one," he commented.

"It has always been an excellent asset to include in a portfolio due its low correlation with equities and bonds and its income generating capacity."

Send this article to: