Commenting, Keshav Thukaram, MD of buy-to-let website Smartlandlord.co.uk, said: “There are indications some sections of the market are stabilising. For example, the number of enquiries we have received for landlords looking for investment properties has doubled over the last six months. Investors are looking to buy property while it is cheap to maximise future yields. A lot of professional landlords had been waiting for the downturn for a long time. They're cash rich and many of them started investing in property during the last downturn."
Talking about the latest Halifax House Price Index, he said: "Don't be fooled by estate agents talking up the market on the back of these figures. This is just another indication prices are bottoming out - not that they are going to start shooting back up again in the medium to long term. We are still a long way from a full-blown recovery. The impact of higher unemployment still hasn't been felt by the economy for instance. These price rises are only being driven by a shortage of supply - not enormous levels of demand.”