Market split as prime property prices rise
The UK property market has split into two segments, with high-end property prices rising as the rest of the market declines, according to the latest prime index from property website PrimeLocation.com.
The monthly index reveals that prime properties — that’s the top quarter of the market by value — saw asking prices increase 0.5% in September, continuing a seven-month rally in which asking prices for prime properties hit new heights. The average price of a UK prime property is currently £472,340.
The latest increase coincided with a second consecutive monthly fall in the general market; asking prices for all properties fell 0.2% in September, with the average asking price now £219,943. This means that the gap between the top end of the market and the general market is now wider than ever, with the average prime property on the market for 115% more than a typical UK home. The gap between the two groups has been steadily rising since the index launched at the end of 2007, and the trend shows no sign of abating. The average prime property then was on the market for £157,255 more than the average property, or 68%.