At Equity Properties we continue to research the market extensively. We know that market research is vital when it comes to any kind of investments.

Due to our extensive knowledge of the current market situation we are able to source developments in the highest growth areas around the country and negotiate significant discounts of 10 – 25%.

Our policy on Due Diligence is very strict. We leave no margin for error in this field as we often purchase usually at least one unit in every development we take on so you’re safe to say ‘Equity Properties practise what they preach’!

While assessing each development all of the following are taken into very stringent consideration:

• Market Value
• Sales Comparables
• Rental Comparables
• Rental Coverage
• Letting/Estate Agents ready
• Town/City
• County
• Population of Area
• Regeneration Costs
• Price Trends for Last 10 years
• Local Amenities
• Schools/Universities located nearby
• Hospitals
• Potential Price Growth
• Main Roads
• Train Stations/Public Transport

These are just a few of the areas that each development offered to Equity Properties must pass in order for us to potentially invest ourselves and of course offer to our members.

Following a rapid expansion and price inflation in the housing market in recent years the market has settled down and further sustainable market growth and development is forecast in coming years. This is fuelled by continued demand through changing lifestyles, demographic trends and, not least, the lowest mortgage rates in living memory. All of this coupled with very poor stock market returns and a virtual collapse in returns on pension investments leads investors back to ‘bricks and mortar’ which, whilst were a few blips along the way, delivered a steady growth in value throughout the latter half of the last century and into this one. Even with the current prospect of a slight adjustment in interest rates arising from high levels of consumer debt, the cost of borrowing remains at sustain ably affordable levels and is likely to remain so just as long as long as we have an eye on monetary convergence with the EU, whose interest rates consistently remain below those of the UK.

Firstly, you should look back at historical trends in the residential property market where property has, subject to the odd drop, always provided a steady return. Secondly, consider where else they are going to invest their profits in the short to medium term. Thirdly, you must bear in mind that any property which is not the principle home will be subject to taxation on any capital gain. Fourthly, short-terms of this nature may be considered ill-advised and precipitous bearing in mind the chancellor's planned changes to UK pension rules, due for adoption in 2005 or 2006, whereby potential CGT and other taxation benefits are likely to be available, once residential property can be placed in personal pension plan.

Another significant factor is the huge undersupply in the provision of residential property. This was highlighted in 2004 in a government-sponsored report produced by Kate Barker, a member of the Bank of England Monetary Policy Committee. The report confirmed that we have an undersupply in the UK, of around 137,000 residential units per annum.

Whilst demand is high, with few viable alternative sources of sustainable investment income, the cost of borrowing remains at all time low levels and the supply for one reason or another is being curtailed, then, by their own basic laws of supply and demand, prices will almost certainly continue to rise. As to what the rate of increase in house prices will be, in coming years, remains open to question. However, it seems quite safe to assume, whilst the current economic and market conditions prevail, that increase they will, and as such, it is safe to forecast that residential property will continue to provide a safe haven for investment.

Most analysts agree that demand for UK rental property will continue to be strong due to rising property prices and a shortfall of quality UK property.

The Barker Report is the definitive report on the UK housing market. This report confirms a housing shortfall in the UK of between 93,000 and 146,000 properties per year. Anyone who is looking to invest in property now and in the future with Equity Properties can see that there is and will be a sustained demand for their rental property in the future.

Evidence suggests that a housing shortage currently exists in the UK with fewer homes built in the last 5 years than at any time in the last 50 years. This is while the UK Government predicts an overall 14% increase in the total number of households by 2021 leading "Halifax" to predict a shortfall of at least 400,000 homes by the same date.