Brent tops London's Price Rise Poll.

The London borough of Brent has seen the biggest rise in property prices in the capital over the last ten years with a 296% increase according to recent research conducted by the Halifax. Other boroughs in the top five included; Westminster at 289%, Newham in the East End at 280%, Camden at 268% and Barnet at 263%. Quite incredibly, Croydon where prices rose by 199%, Greenwich at 193%, Bexley at 192%, and Sutton at 190% were the only boroughs to show rises of less than 200%.

Buy-to-Let Growth Continuing to Slow.

Although the buy-to-let sector once again grew strongly during the second half of 2004, lending fell by 18% compared to the first half of the year, according to a recent survey conducted by the Council of Mortgage Lenders (CML). However, at £21.8 billion, total residential investment lending for 2004 as a whole was still 14% up on 2003. Buy-to-let lending continues to account for 6% of total outstanding residential mortgage lending.

Commenting on the latest survey, CML Senior Policy Adviser Andrew Heywood said: "Our survey suggests that buy-to-let investors are largely holding on to their existing portfolios, but simply making fewer acquisitions. This trend of slower, but continuing, market growth is what we expect to see throughout 2005.

"Recent CML research to gauge buy-to-let landlords' intentions suggests that most expect to maintain or increase their holdings, and have a long-term interest in the market. We are confident that the buy-to-let sector will continue to grow and to form an attractive part of many investors' portfolios."

Despite the recent slowdown in the housing market, people continue to favour property as an investment. According to a recent survey conducted by Invesco Perpetual, 41% of 526 ISA holders believe that property will provide the best returns in the year ahead.

Neil Woodford, Head of Investment at Invesco Perpetual, is displeased by the findings. He said: "Whilst residential property has undoubtedly been a good investment over the past few years, it is extremely dangerous to project these returns into the future."

"Relative to equities, and in absolute terms, the valuation of residential property now looks extremely stretched. I believe that there will be a downward correction in the housing market over the next two to three years."

Redevelopment in Coventry

A number of residential, commercial, leisure and retail projects are in the process of being built in Coventry with the intention of improving the area. Mark Evans, partner at Knight Frank, says: "There can be no doubt that Coventry is an emerging market. At the moment the area is less developed then say Birmingham and so investors are getting good value for money, as vast improvements are now being made in Coventry."

More Affordable Housing on the Way

As part of the Deputy Prime Minister, John Prescott's plan to drive forward thriving and sustainable communities. £5 billion has been budgeted to create more affordable housing. Of this, some £1 billion will be spent on homes for key workers, £300 million to encourage modern build housing, £500 million for deserted and rundown housing areas in the North and Midlands, £2.8 billion to improve social housing, and finally £201 million will be spent on improving the local environment.

Mr Prescott said: "A step change is essential to tackle the challenges of a rapidly changing population, the needs of the economy, serious housing shortages in London and the South East and the impact of housing abandonment in the North and midlands."