Yes - every investment carries some risk. Direct investment in property means, however, that in the worst situation there could be a reduction in value - not a total loss of investment as can happen with deposits with banks or investments in shares or securities. The risks of an investment in residential property in Cambridge or Exeter can be summarized as follows:
House prices in these cities could fall from current levels.
This risk factor is largely influenced by national economic factors beyond any individual's control. However, both cities have performed better than most in recent UK economic downturns and prices can be expected to rise Click below to read more:
There is a structural fault, or other hidden disadvantage to the property purchased (e.g. a nearby public house has been granted a live music entertainment licence) which leads to a reduction in value of that particular property.
We minimize this category of risk by requesting that all clients, in every instance, have an independent survey and valuation prior to exchange of contracts on the purchase.
There could be a delay in finding tenants, or the tenants could fail to pay rent, leading to a reduction in expected rental income.
These risks are substantially less in Cambridge and Exeter due to the constant high demand for accommodation, and minimizes them by having only high quality properties, detailed vetting and a highly efficient letting and management service.
What if the rental values decline?
The Department of the Environment estimates a 42% increase in single person households up to 2011. This growing market sector is the prime one for renting against a background of rising house prices or instability in the market. High quality residential property should retain its rental value even in adverse circumstances.
minimizes them by having only high quality properties, detailed vetting and a highly efficient letting and management service. 
