For those with access to finance the current property market offers good potential for profitable investments an expert has suggested.

Kesh Thukaram, Managing Director of property website Smartlandlord.co.uk believes that despite the volatile economy there are landlords who don't need to rely on debt to expand their property portfolios.

On data published today in the Halifax House Price Index which revealed that house priced fell by 0.5 per cent in June, Mr Thukaram admitted that many landlords could be struggling in the private rented sector.

However, low prices are a blessing for potential investors, he continued.

"This is a perfect opportunity for them to invest in further properties while they offer the best value for money" Mr Thukaram said "They can secure good yields for the future while expanding their portfolios."

Landlords looking to cut costs to protect their investment were advised by the expert to consider managing properties themselves rather than paying fees to a letting agent.

The drop in house prices recorded by the Halifax House Price Index comes despite the latest data from Nationwide recording a 9.9 per cent gain.

Philip Bellamy, Head of the Property Department at Rowlands solicitors in Manchester said "Availability of funds is to the key to recovery. Investors with access to loans or with cash resources are beginning to return to the marketplace. However, they are tiptoeing rather than running and are driving hard bargains when they arrive."

Simon Rubinsohn, Chief Economist at the Royal Institution of Chartered Surveyors, said the discrepancy between the two surveys offers a "timely reminder" that the housing market has not necessary "bottomed out".