Price gap between upper and lower tier housing 'set to increase'

The gap between the upper and lower tiers of property in the UK is set to widen in the next five to ten years, according to the leading global estate agents Savills.

Savills' comments come after a recent National Association of Estate Agents NAEA report claimed that the housing market will recover at different paces in separate areas of the UK, highlighting to those looking for cheap mortgages that location is all important.

Lucian Cook, director of residential research at Savills, said that the differing performance is likely to stem from homes on the lower tier of the market being targeted by investors looking for rental returns.

He believes that the middle and upper tiers of housing will be driven by owner-occupiers and the ability to access the best mortgage rates, which is a function of interest rates and a range of other factors.

A survey published by the Royal Institute of Chartered Surveyors reported that 44 per cent of chartered surveyors reported a price decrease in November with the number of house hunters also declining.
 

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2010-12-15 12:33:25 © Moneyextra.com