The month of May saw the highest increase in house prices since the year 2002. The Halifax price index showed a 2.6% increase in house prices over the month of May.

Whilst Banks may continue to remain cautious, the nationwide figures also indicate a 1.2% rise with Estate agents also seeing an increase in buyers and buyer confidence.

The bank of England has also shown an increase of new mortgages signed.

All these factors are contributing to the improvement of the UK property market. Whilst no one can say for certain whether the current figures will be sustained over the next few months it does seem quite promising.

Some analysts attribute the increase in prices to a reduction in properties currently available in the market due to people being reluctant to sell their properties for fear of getting a lower price as compared to a year from now. There is also the case of new building projects being temporarily shelved. This may be the reason, however unemployment continues in most sectors which will still see a higher number of houses entering the market soon.

Since the bottoming out of the market cannot be accurately predicted it is difficult to find out when you'll get the best deal for purchasing properties for investment. Get in touch with Clear Property Investments to get the best advice and deals on Buy to Let property today!

View other news from July 2009