So the economy is still in recession but with good market research, planning and financial analysis there’s still money to be made in the property development market.

The number of single people seeking homes is going up with an ageing population and because of divorce. Low levels of interest and a lack of new homes is continually putting upward pressure on the housing market. The slow planning process has also failed to deliver enough housing.

A good indicator of an up and coming area is the growth in business properties. These figures can be gained from local authorities.

It’s also important to make sure that your ideas for a development fit what the market want. There’s no point developing a big house into flats if it’s not what people want and would therefore lose you money.

Once you’ve decided which market you’re going to look at it’s then important to choose the right property. Choose a development which is within your abilities or that your builder can develop within your budget.

With the right market and the right property, development is still worth it.

The main risk involved when opting top buy property to rent out is that the value of property can go down as well as up, as can any investment. Additionally, when you rent out a house you are responsible for keeping the house in sufficient working order, so any boilers, washing machines or leaking taps will be your responsibility to sort out. Difficulties can also arise when arranging finance if you are planning on letting to a student or a DSS tenant.

It is common knowledge that property prices have been shooting through the ceiling over the past couple of years. However, if you have been keeping up with the latest newspaper headlines, the internet or if you speak to an estate agent, it appears to be emerging that the property market may be slowing down, or even turning round. Property that is situated in a good area with a low crime level, on a public transport route, outstanding State schools/colleges/universities and with easy access to fundamental amenities, will almost definitely forever be sought after.

Nearly all surveys are in agreement that the slow-down has been more prominent in the London area and the SE of England, where property prices are extremely more elevated. 1^st time property purchasers have a predominantly hard job affording a property in these areas, and the county has also witnessed massive employment casualties amongst the wealthier City employees. In other areas of the country, in particular up North and Wales, where property prices are a lot less, the property market has carried on rolling ahead.

Since the peak of house prices in July 2007, house prices have fallen significantly. The Main Reasons for this are, difficulty of getting mortgage due to credit crunch, affordability (low income), current economic recession and high un-employment rates and also fear of losing money. Simple laws of supply and demand show that until all of at least some of these problems are rectified house prices will continue to fall considerably. House prices in the U.K have fallen every month for the last 12 months and expert economists believe that this current slump could infact go on until as late as 2010. Although bleak sounding, the current state of the property market does favour certain individuals, such as first time buyers who have already secured loan agreements as it gives the a better deal for their money and also alot more bargaining power with estate agents.