Last week’s decision by the Bank of England to cut interest rates by a quarter-point, from 5.75% to 5.5%, has been received by some as a breath of fresh air.  If you are one of the millions as yet unable to get on to the property ladder, you are probably delighted at the prospect of a house price slowdown.  Others however, fear that falls in house prices are a further dash to investor confidence in England’s property market as a whole.

According to Nationwide Building Society, property prices in the East Midlands will stagnate next year.  This prediction may well be possible in general terms but, as niche market experts, IPIN would argue that an investment opportunity can be found just about anywhere in the world, including England! 

Take Nationwide’s example of the East Midlands and we are fully aware that there are property investment opportunities that break the mould – a case in point being the regeneration of Nottingham city centre’s Lace District.  Off-plan apartments at Summer Leys House are offering fantastic prices and payment terms, along with relatively strong projected returns on investment.  These units offer excellent buy-to-let investment opportunity as they are ideally situated in an up-and-coming, central part of town where demand for quality residential and commercial real estate has never been higher.  The developers’ conservative growth rate predictions are set at 8% per annum, a figure far exceeding the stagnant forecast delivered by Nationwide for the East Midlands. 

Other favoured areas where solid opportunities can currently be sourced are certain areas of the North East, Manchester and Southampton.

IPIN recommends investors take a good look at England before taking that all-important decision to buy overseas.  We grant that buyers will not be seeing the sky-rocketing returns in short term investment that can be enjoyed in some locations abroad, but for those investors willing to buy well and hold onto their investments, England’s reassuringly stable investment climate can prove highly appealing. 

If you’re a homeowner, then we would advise you not to panic about comments from today’s scare-mongering press.  Even if house prices fall 10% in 2008, they will be returning to roughly the same level they were at the start of this year.   Remember that prices should still rise in the longer term and simply holding onto your investment will bring good returns.  In the meanwhile, in some key city locations (such as Nottingham’s Lace Market District), rental yields to feed your investment are reaching a very respectable 6% per annum.