The Complete Guide to Property Investment: How to survive & thrive in the new world of buy-to-let

by Rob Dix

As the recovery phase develops, more buyers will have the confidence to enter the market – having the effect of pushing prices gradually upwards. Look out for big companies and pension funds starting to buy up distressed portfolios: they have the market intelligence to get in early but can’t take the risk of getting in too early, so it’s a good signal of the recovery solidifying. The prime assets will always be the most attractive, so this early growth tends to begin in the centres of the most economically powerful cities and “ripple out” from there. Perhaps following a slight mid-cycle dip as the earliest movers take their profits, the recovery phase will give way to the explosive phase. It’s now clear that prices are on the up, and the banks will be over the shock and willing to start lending again. That supplies enough confidence and capital for major building projects to start again, so expect to see more cranes on the skyline.