Divide exists between top property and the rest
The most expensive top-end properties in the UK are causing pricing issues in the market, as a large gap opens between those and other houses for sale across the whole of the country.
This is the opinion of one expert, who said that the most expensive properties keep seeing a level of demand that means their cost can stay high, especially in London.
However, this comes at a time when it has also been reported by Hometrack that the UK property market is starting to see issues because the supply of homes in London is beginning to see a slip below the level of demand.
Roger Southam, chairman and chief executive at Chainbow, said that there is definitely a divide being driven by the top end homes in the city.
"There is no sign of abatement in rising prices and demand at the top-end as London hits the spotlight as a premier league world class city. However, in the general market, London has held up well but there is speculation that may not continue. The underlying fundamentals are still there however, in terms of shortage of stock, good demand and increasing rental demand."
However, despite the fact that he spoke of "two markets" and the fact that there are ever-rising prices in properties for sale in the very highest band of values, Mr Southam also said that there are factors which could adversely affect the market over the coming years.
He spoke of the fact that banks are still nervous when it comes to lending and approving mortgages, as well as saying that it can be difficult to move between two banks because they are all keen to ensure that they are securing their fees when it comes to lending.
He also said that the recession, and the general financial worry of Brits, was making it difficult to be certain with regards the future.
Posted at 02:09 30/07/2012