Property experts tip residential as a prime target for investment

PROPERTY investors plan to cash in on the fragile parts of the residential market over the next 12 months, according to survey figures released today.

Just 13 per cent of the 146 property professionals surveyed by Investec believe that residential property values will go up in the next year.

Almost half (49 per cent) expect average prices to decline, and one in eight predict a fall of between six and 10 per cent during 2011.

Housing was ranked the most attractive buy for property investors this year, with retail and leisure properties ranked joint second best.

One in three investors surveyed expects yields to increase this year, while 14 per cent predict a drop.

The findings support a poll of economists by Reuters last week that suggested a decline of around two per cent in average UK house prices over the next year.

Gary Dobson of Investec’s Structured Property Finance division said: “Residential property values in the UK remain depressed compared to their peak.

“This should create some great opportunities for investors as they take advantage of low valuations and higher yields.”