House prices have risen at their fastest rate this year, with Welsh properties showing strongest growth

Wales recorded the strongest annual house price growth of all the UK nations.

According to figures released today, England saw a 3.3% rise while property prices here jumped by 4.3%.

House prices have risen at their fastest rate this year so far according to official figures which add to mounting evidence that the property market is bursting back into life.

Prices rose by 3.1% year-on-year in June to £242,000 on average, marking the strongest annual upturn recorded by the Office for National Statistics (ONS) in the last six months.

On a monthly basis, values rose by 0.4%, equalling the increase recorded in May.

House prices in London have soared by 8.1% year-on-year, but growth remained patchy and in Scotland and Northern Ireland prices edged down by 0.9% and 0.4% respectively.

The report was released as the Royal Institution of Chartered Surveyors (Rics) said it saw house prices rise at their fastest pace since their 2006 peak last month.

And yesterday, mortgage lenders said that the number of buyers climbing onto the property ladder for the first time is at its highest level since the financial crash in 2007.

A string of reports have pointed to a buzz in housing market activity following the launch of various government schemes such as Funding for Lending and Help to Buy which have helped to unblock the housing market by making it easier to access a mortgage.

However, some experts warned that the Government’s schemes could come back to “bite” and fears been raised that the measures could lead to a property bubble, with borrowers over-stretching themselves.

The ONS figures showed that the average price paid by a first-time buyer has risen by 3.9% over the last year to reach £182,000.

Matthew Pointon, a property economist at Capital Economics, said: “Government boasts that their schemes to pump more credit into the housing market are now bearing fruit may soon come back to bite them, as housing costs become even more of a burden on stretched household finances.

If you're thinking about investing in a rental property, experts say low home prices combined with low interest rates make this the best time in years to become a real-estate investor.

What's more, the real-estate market is starting to recover: U.S. houses lost $489 billion in value during the first 11 months of 2009, but that was significantly lower than the $3.6 trillion lost during 2008, according to real-estate website Zillow.com.

"We haven't seen home prices this low in so many years, coupled with the rates being so low," says Jill Sjolin, an agent with Windermere Real Estate in Woodinville, Wash., who specializes in investment properties. "When the money is cheap to borrow and the houses are cheap to buy, it's absolutely the best time to invest."

While the timing may be right, these five tips can help first-time investors take advantage of what might be the opportunity of a lifetime.

After a fair amount of research, a real estate investment meeting or two, and a few discussions with your peers, you’ve decided that real estate investing seems like a great option to help grow your savings and turn up the returns in your portfolio. The only concern you have is that as a young professional, you don’t have a lot of extra time or the desire to acquire another full-time job actively managing your investments. Below are five examples of hands-off opportunities that allow you the benefits of putting your hard-earned money to work in real estate-backed assets without giving up the minimal free time you have. 

Joint Venture Partnership
A great way to get into real estate investing is by partnering with someone that has experience and a strong knowledge base.  The most common joint venture structure has the investor responsible for the costs to purchase the property as well as qualify and hold the mortgage in their name. The other partner will locate a suitable property, find quality tenants, manage it day to day and deal with any issues that arise. While it is common to split the profits/losses equally, one of the advantages to a joint venture is that it can be structured any way the partners agree. Do your homework on who you partner with and what you’re purchasing.  Both partners should have similar goals going into the transaction. Don’t be afraid to ask questions, talk with current and past partners, and ask to see a proven track that shows their success. 

Rent to Own
Although not a completely hands-off investment, rent-to-own involves purchasing a home and renting it out to a tenant who plans on purchasing the property for a pre-determined price usually after 2-5 years. Many families make a great income but don’t qualify for a mortgage due to lack of credit or previous circumstances. Because the tenant will be buying at the end of the contract, they are required to put down a deposit at the beginning of the term and set aside money every month which will eventually become their down payment. They are also responsible for any maintenance and repairs to the home while they are living there. As an investor, your security is that at any point the tenant leaves or doesn’t qualify for the mortgage, you keep their initial deposit as well as the monthly credits they have set aside. Should this happen, you can either sell the property or put a new tenant in the home. 

Private Mortgage Lending
Many homeowners that don’t qualify for traditional financing look to the private side of the lending industry. Some borrowers are new to the country and don’t have established credit; some may have more properties than the banks are comfortable financing, and some may want to take out equity from their existing home to pay off debt or complete a renovation. Private lending on residential property is on the more risky side of the investment spectrum since there is usually a reason why the borrower can’t qualify through a bank, but the returns can be higher as well. Mortgage brokers can be a great source of these deals, but make sure you do your homework on who you are lending to and what the terms are. This is your hard earned money, and as a young professional you want to make sure it’s invested efficiently with the risks as managed as possible.