Prime property demand peaking despite downturn in market
June 24, 2011 Leave a comment
Prime property asking prices have reached a record high. The latest report suggests that since 2007, alone in May asking prices have increased by 1, 3%.
The gradual increase of prime property prices from £457,040 in April to £463,153 in May, illustrates the high market value of prime properties, which make up the top 25% value of the property market.
Since May 2008, the average prime property asking price has dramatically increased, by 13% (£53,000) over the last three years. On the contrary the mass property market has experienced a negative price fall of 0, 2% during the same time period.
To answer the speculation and uncertainty in the property market, UK prime property prices nationwide have in general increased. Wales up 4, 6%, Yorkshire and Humberside at 6.1% and Scotland with a growth of 2, 4% in the monthly quarter. The only exception being London with a slight decrease of 0, 1% in prime property prices.
Currently, prime property prices stand at £347.356 in Wales, £357.822 in Yorkshire and Humber, £322,607 in the North East of England, £451.959 in the East of England, £574.926 in the South East of England, £480,828 in the South West of England and £1,148,484 in London.
Analyst Nigel Lewis from the property search engine Primelocation states that: “The figures speak Nigel’s for themselves. In the past three years, for all the talk of difficulties in the housing market and the economy wider, the top end of the market boomed while the rest has of the market has seen prices stagnant or fall”
“Wealthier people with larger homes are still able to move up the property ladder because it’s easier for them obtain mortgages. So intense demand in this is part of the market order, on the other hand, supply and has done remains low for some time. It’s difficult for people in the prime market to find the house at the moment they want and prices have been so people bid as rising higher and higher, “