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Stagnant economy creates buyers’ market

House price indices for April reported that property values are "continuing a trend of modest decline" with the exception of micro-markets such as London and areas of the South East, yet May figures have shown a modest rise.

Carlile said: "The more strict lending criteria has forced a lot of novice investors out of the market, providing an opening for those with greater capital to take advantage of the stagnated housing market, which is demonstrated by fluctuating prices, and some favourable mortgage deals."

While conditions are ripe, Platinum Portfolio Builder advises those looking to invest in property to seek expert advice, or research the area they choose to invest in very carefully to find properties and locations where prices have hit rock-bottom and plateaued, to avoid finding themselves in negative equity further down the line.

Carlile said: "Last year alone, Platinum Portfolio purchased property at an average of 26% below surveyed value and with property prices under even greater pressure and the likelihood that they will continue in this vein throughout the second half of 2011, building a profitable property portfolio is currently more acquirable in a shorter space of time, as the percentage of equity in each property is greater.

"Once the market is on the floor, the only way is inevitably up, and although this requires a long-term school of thought, now certainly is a buyers’ market for those that can afford it."

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