Today

Neil Young, chief executive of property investment firm Young Group, talks to 999Today about the implications for the buy-to-let sector of the Bank of England's decision to hold the interest rate steady at 5.5 per cent in January.

Base rate static:
"Consensus has been split equally over whether today's base rate decision would result in a rate drop. However, historically January is not a month for movement. Instead, the Bank's Monetary Policy Committee (MPC) prefers to wait until the Treasury's quarterly inflation report is available the impact of retail trading over the Christmas period has been quantified.

"A static base rate for January comes as no surprise and all eyes will turn to February's announcement when the next drop in base rate is expected."

Buy-to-Let investment market:
"People need to remember when investing - whether in a bull or bear market - that it is buying well that ensures a good investment. This was true in the first half of 2007 when the market was strong and is still true as we move into 2008, as people are being more cautious.

"The world has not come to an end; funding has become more difficult to come by. Economic indicators are still positive, inflation is low at 2.1 per cent, unemployment is low and falling, productivity is up by 2.7 per cent and yet further cuts in the base rate are forecast. Buy-to-let property remains a solid medium to long term investment class, providing people do their research and look at the facts and fundamentals of each opportunity, without being swayed by marketing spin or doom-mongering reports."

Housing affordability:
"Affordability for first time buyers is at the lowest level since 1980, forcing would be purchasers to remain in rented accommodation for longer. Indeed the average first time buyer is now 34 years old. Housing supply, particularly in London and the South East remains constrained at a time of unprecedented demand from tenants, underpinning robust rental growth."

Long-term confidence:
"The Association of Residential Letting Agents' latest review of the buy-to-let sector confirms that the majority of landlord investors take a long-term view and are not phased by market volatility. Nearly 90 per cent of landlords intend to hold their property investments for the next 10 years or more and our own Young Index (Q4 2007) indicates that 54 per cent of landlords intend to buy additional investment properties within London during 2008."

Mortgage lending:
"Moving into 2008, mortgage funding will be more difficult to come by as lenders, rightly, tighten their lending criteria in response to the credit crunch and increase due diligence on mortgage applications. However, a purchaser with a good credit history and a realistically priced property will still find good mortgage products from lenders.

"Although the current conditions make it more arduous and time consuming for those seeking funds for property purchases, the shake out in the mortgage market will result in a stronger and more robust market. We are already seeing sense coming back to the market."