Prime market going strong

Posted: 13 May 2008 11:02:12 GMT

The UK's prime property market continues to perform well despite the global credit crunch.

The UK's prime property market continues to perform well despite the global credit crunch.

That is according to London Central Portfolio (LCP), which said that investors in this end of the market tend to be in it for the long term.

In addition, they are less reliant on credit in order to buy property, meaning that repossessions and distressed sales are kept to a minimum.

"Prime properties are largely held by long-term owners, either as second homes or as rental investments, but they are unified by a low reliance on credit," commented Naomi Heaton, chief executive of LCP.

"Low loan to value ratios in well structured investments and long-term mortgages that have largely been paid-off mean that repossessions are minimal and distressed sales are few and far between.

"This means that the market is not being flooded with property, which would suppress prices," she continued.

Recent research from Halifax Estate Agents showed that there was a 36 per cent rise in the number of properties sold for at least £1 million in the UK between 2006 and 2007.

© Houseladder Ltd