Election to yield 'difficult market for prime property'

Posted: 06 Jan 2010 10:32:51 GMT

This year's upcoming election is set to make the prime property market "more difficult", according to estate agents Prickett and Ellis.

Nigel Ellis, senior partner at the firm, says that he anticipates a "financial squeeze" to take place post-election, with interest rates rising leading to more prime properties coming on to the market.

"I would say we will have more properties to sell after the election, but I think it will be a harder market," he states.

Mr Ellis goes on to add that this could be because less people are inclined to move due to the current economic downturn.

People used to move every five to seven years, he explains. However with low mortgage rates at present, there is not any real reason to move.

According to PrimeLocation, 2009 was a buoyant year for the prime property market, with a national price growth of 6.3 per cent.

Mr Ellis argues that these figures are somewhat surprising as there has not appeared to be many homes of this status on the market in recent months.

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