So reports the developer Linden Homes, which has sold 35% of all its units to investors since the beginning of the year.

Compared to 2005, the market is vibrant - driven by high levels of consumer demand and opportunities for investors to borrow money relatively cheaply. The continued health of the market does therefore depend largely on static or falling interest rates. A further drop in rates over the coming months, as widely anticipated, would provide a further boost and convince remaining investors (who have held their nerve throughout 2005) to return to the market with a long term view.

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First time buyers too are making a noticeable return, underpinning prices and generating confidence at the lower end of the market, which is also good news for investors.

Philip Davies, Chief Executive of Linden Homes comments: “I am encouraged by the number of professional investors making reservations this January and February, who have chosen not to expand their portfolios until now. They are investing for the long term and are expecting steady house price inflation of 3 - 5% rather than a return to the growth levels of previous years.”

The buy-to-let market is expected to grow at a healthy pace throughout 2006, spurred on by factors such as increasing numbers of household break ups, growing student populations and increased immigration.

Philip Davies continues: “While I expect the housing market to remain price sensitive through 2006 with asking prices remaining considerably more realistic than during 2005, we can look forward to the market continuing to gather momentum in the first half of the year.

“We are very committed to the investor, from private landlord to Institutional Fund Manager, which is why this year we are launching a series of seminars for both groups.”

The Linden Investors Club offers members many benefits including discounts and advanced details of forthcoming Linden schemes and incentives. Its Fusion development in Kingswood, Bristol, is a ood examplke of investor stock: 2-bed apartments are available from £159,995.
For further information visit: lindenhomes.co.uk or contact the Investor Club on 01895 827 447.