Cheap mortgages less likely in spa towns, study finds

People looking for property in spa towns across England and Wales are less likely to get a cheap mortgage for their new home.

A recent study by Lloyds TSB revealed that house prices in spa towns across the two countries are, on average, £38,000 more expensive than the county standard.

It found that of the 18 spa towns surveyed, many were significantly more expensive than those in neighbouring areas and only three towns had house prices below their county average.

Buyers are least likely to get a cheap mortgage in Boston Spa or Illkley as the West Yorkshire towns boast house prices that are nearly double those in the surrounding towns.

Nitesh Patel, housing economist at Lloyds TSB, said that the higher prices are created by a strong desire to live in Spa towns as they offer a large selection of period property.

"Spa towns are also often thought of as having a high quality of life, including excellent schools, lower crime rates, and lesser traffic volumes, all of which drive desirability in these areas and ramp up value," the expert explained.

The BBC recently reported that average house price in the UK has now reached £232,628.

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2011-03-14 13:02:40 © Moneyextra.com