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There really could not be a better time to invest in UK property, and London is a favourite spot for Buy To Let Landlords.

Property investors looking for Buy-To-Let investment opportunities may have the chance to bag a property bargain after average residential property asking price fell by more than £7,000 (GBP) last month. That’s the biggest fall in monetary terms for almost 4 years.

The average asking price for a residential property in England and Wales in November is now £232,144, down 3.1% compared with October, according to the latest survey by property website Rightmove.

The number of new property instructions on the market also fell back to levels last seen during the 2008 collapse of American investment bank Lehman Brothers, which sent the global economy into recession.

Even London could not buck the trend in dipping valuations as all regions in England and Wales were hit by monthly property price falls for the first time in over 3 years.

Although London is still the prime location for buy-to-let investors, as rental rates rose faster in the UK’s capital city than in any other UK region over the past 12 months.

Amid a flagging market, London’s annual increase in rental rates remains significantly higher than other parts of England and Wales.

Rental rates in London increased by 5.7% in October, compared to a 4.6% rise in the West Midlands, and a 4.4% rise in the South East.

Rental yields also rose in the capital, increasing to 5% last month from 4.9% in October 2010

However, the rate at which rental rates are rising has slowed, and the annual increase to 5.7% in October does represent a fall from 5.8% in the previous month. But rents have now risen for 9 months in a row and already stand at a new record high, while the average yield remained steady at 5.3%.

When these figures are combined, buy-to-let landlords with rental property in the UK’s capital city are very happy investors.

For the rest of the UK, the average property asking price in November 2011 fell by £7,528 compared with October 2011, the biggest monthly drop in financial terms since December 2007, although this is still 1.2% higher than November 2010

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Mortgage lenders have been slashing the cost of fixed-rate mortgages this week, with one provider launching the lowest ever five-year fixed rate in history at under 3.5%.

On Friday of last week, Yorkshire Building Society cut its five-year deal to 3.49% following a flurry of activity by lenders.

More providers, including Clydesdale Bank and Woolwich, have launched five-year fixes at below 4%. There are now more than half a dozen lenders offering five-year deals at this level.

“Five-year fixes keep falling to new lows, giving borrowers looking for security over the medium term the pick of some fantastic rates. Those who have enough equity in their home and can qualify for a five-year fixed-rate at well under 4% may be wise to take it, as it is unlikely to get much better than this.” said Melanie Bien of Private Finance.

Banks and building societies have also been cutting the cost of two-year fixes. On Tuesday, Woolwich reduced its two-year fixed rates, making the two-year fix the current best buy in the market.

However, mortgage brokers believe five-year fixes will provide better value than a two-year deal over the long-term as borrowers risk having to remortgage at a time when rates will be much higher.

Mortgage brokers said lenders have been reducing the cost of fixed rates due to the fall in swap rates – the rate at which banks lend to each other – in recent months, following market expectations that interest rates will now not start to rise until late 2012.

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