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There is a lot of trepidation from many who say that investing in property just doesn't bring in the returns it once did before the credit crunch – but could your property price have increased by double digits this year?

According to Nationwide's latest house price index, house prices increased 8.6% year-on-year in January of 2010 – and it says that if house prices rise again next month, the annual figures will probably be in double figures. In January alone prices rose by 1.2% to an average of more than £163,000.

Martin Gahbauer, Nationwide's chief economist, says: "House prices strengthened their upward momentum at the start of 2010. The three-month on three-month rate of change – usually a smoother indicator of the near term trend – dipped slightly from 2.3% in December to 2.1% in January, but this primarily reflects the smaller price increases recorded in November and December.

"Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007."

It seems unbelievable after the year we have just had, but your buy-to-let property may be worth thousands of pounds more than last year. Of course, most landlords had not even considered their property price in 2009 and instead concentrated on rental income – but this a welcome bonus for many who have questioned whether their investment was prudent.

If you do not know how much your property is worth it might be worth finding out – if your buy-to-let home has increased considerably it might be worth considering a new buy-to-let mortgage. The lower the loan to value ratio, the better deal you are likely to receive from the lender. So talk to a buy-to-let mortgage expert today about the possibly of a buy-to-let refinance deal for your growing investment.

SOURCE: Nationwide, 29/01/10

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