The housing market is driving onwards and upwards - just how long for is difficult to call. In the spirit of speculation I've given it a go........

The two most important factors at play right now are the numbers of people in the buy to let market and the level of interest rates. When interest rates rise, the overheads for all buy to let investors will increase sharply. Afterall, a 1% rise in interest rates when they are at 4% is a 25% increase - 2% a 50% increase. As interest rates rise, buy to let investors will begin to sell their properties as there are too many flats on the market chasing too few tennants. The combination of lack of rental income combined with increased overheads (higher interest rates) will force many people to sell. In so doing prices will come down.

The main sector this will have an affect on is the 2 bed flat market, and expect the biggest falls in that sector of the market towards the end of this year and early next. Good bargains will be available to anyone with the nerve to buy then.