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Is the UK witnessing a two-tiered housing market?
There could be a widening gap in the UK housing market, creating a two-tiered property sector.
Knight Frank reported recently that prime central London property capital value had increased one per cent in April, leading to an annual growth rate of 8.3 per cent.
Indeed, these top-end homes have seen average price rises of £767 every day for the past 12 months, showing a very different outlook to the lower-end market.
"I think it is highly likely that the two-tier market will increase, or that the difference between the two tiers of the market will increase rather than decrease," observed Ed Mead, director at Douglas & Gordon.
He noted that as long as demand outstrips supply, prices will increase and supply of top-end housing stock is "not showing any signs of increasing".
Figures from the Bank of England show that there were more mortgage approvals made in March than the six-month average, totalling 47,557.
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Knight Frank reported recently that prime central London property capital value had increased one per cent in April, leading to an annual growth rate of 8.3 per cent.
Indeed, these top-end homes have seen average price rises of £767 every day for the past 12 months, showing a very different outlook to the lower-end market.
"I think it is highly likely that the two-tier market will increase, or that the difference between the two tiers of the market will increase rather than decrease," observed Ed Mead, director at Douglas & Gordon.
He noted that as long as demand outstrips supply, prices will increase and supply of top-end housing stock is "not showing any signs of increasing".
Figures from the Bank of England show that there were more mortgage approvals made in March than the six-month average, totalling 47,557.
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Published: 17/05/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.