Property market 'slows quicker in country'

Posted: 23 Sep 2008 13:22:33 GMT

When there is slowdown in the property market, it takes hold quickest in the country because there are less buyers, it has been claimed.

According to property investment specialist 1st Asset, there are several people looking to rent out their houses in rural areas due to the slowdown in the market.

Andy Smith, managing director of the firm, explained that housing prices in areas with strong demand fall much less quickly than those in more remote areas of the countryside.

"There are quite a few people in the country looking to rent out their houses but the problem is that the large house market is slower and that means that there are more rental properties on the market," he said.

"Whereas in city centres you tend to find that more people have sold and therefore more people are trying to sell, rather than rent, their properties out."

Meanwhile, an expert from independent mortgage broker Savills Private Finance has warned that the recent financial turmoil could have an adverse affect on mortgage customers.

"This is discouraging lenders from lending to one another, pushing up the cost of borrowing in the money markets. We expect this to result in higher rates on new fixed-rate and tracker mortgages in coming days," said Melanie Bien, director of the firm.

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