Although there was very little change in the overall average in most areas there were clear differences in trends within local markets. Larger properties have seen values rise in most areas over the last year, whilst the value of smaller homes is generally lower than it was 12 months ago.
David Marshall, business analyst with ESPC explained: “Since the credit crunch it’s been demand at the lower end of the market that’s been hit hardest. The large deposits required to access better mortgage rates remain a barrier for many first
time buyers and demand from buy to let investors is still relatively subdued. As a result we’ve seen the value of smaller properties in most areas decline throughout much of 2011. The demand for family homes is comparatively strong meaning values of these properties have inched upwards recently.
“Overall, the number of homes on the market is higher than you would normally expect to see at this time of year and the number of people who are in a position to buy is still below pre-credit crunch levels meaning buyers remain in a position of
relative strength in the market. Roughly 80% of properties selling are being secured for less than the Home Report valuation and sellers will probably have to show a willingness to negotiate with buyers if they are looking to secure a quick sale.”
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