Looks like we’re going through another period of uncertainty, which is never good for markets.

Cuts on the way, and we will know a lot more about these and their projected impact over the next 4 years over the next few weeks.

The banks are not out of the woods yet and the West’s usual economic powerhouse, the United States, is still in the doldrums, leading some to predict a double dip. This is also leading to speculation that the UK may yet need more economic stimulus and perhaps gentler phased-in cuts.

The uncertainty is affecting the housing market with one of its biggest recorded falls for many years in September. With the house-price to household-income ratio still 50% above its long-term average, and prices currently only around 6% off the 2007 peak bubble price, there could be yet further to fall?

But, it’s not all doom and gloom for investor landlords: as prices fall yields strengthen. With interest rates likely to remain low for some time and rental demand underpinned by many positive factors, rental incomes remain relatively safe. Individual cases may vary though if tenant redundancies are involved, and these could be substantial following the cuts.

In times like this, with manageable interest rates and good tenant demand, landlords need worry about one thing only – rental income. So long as you manage properties efficiently, maintaining positive cash flow, adding to your portfolio cautiously when the right buying opportunities arise, you’re on the right track.

For more information about the best way to Buy-To-Let call the office today for some free advice.

28/10/10