Prime property prices 'rising because of shortages'

Tue 2 Mar 2010 - Published in Mortgages

Supply shortages are causing house prices in the prime property market to rise, according to an expert.

Nigel Ellis, director of estate agent Pricket & Ellis, said there are not enough homes in the Ł600,000-plus market to meet the high level of demand which is being experience.

"A lot of [properties] are coming on [the market] at maybe ten per cent more than they were at the end of last year and getting snapped up at that level," he explained.

Mr Ellis also claimed that the shortage in the prime property market is especially strong in London, although it can be seen in many other areas in the UK.

In addition, the expert suggested the shortages could become more acute and prices rise further in the coming months, as this is the period when people traditionally look to move home.

Recent figures from Primelocation.com showed the average prime UK property was valued at Ł449,095 in February, showing a 3.7 per cent increase from one year earlier.

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