At least £18bn of equity tied up in houses and flats is expected to be released from property in coming years, with investors expected to spread this money across a range of asset classes, according to Skandia.
Sliding residential property prices, compounded by higher mortgage servicing costs and sluggish rental growth, will drive many aspiring landlords from buy-to-let property. This will release a vast sum of private investment capital that has gone into property speculation in recent years, Skandia says. Buy-to-let property investment has grown strongly on hopes of sustained high financial returns compared with other asset classes, with much of this growth coming from mortgage-financed investment. The stock of buy-to-let mortgages rose from £2bn in 1998 to £120bn by the end of 2007, while...
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