Supply and Demand
14/03/2007 - The bubble is yet to burst on investment properties
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The average house price is once again far higher than the property market pessimists anticipated. A rise of almost £122 per day according to some has meant that the prices are remaining high and demand for properties far outstrips supply in many areas of the UK. There are as many as eight buyers for each family property on the market in some parts of London.
The average price of properties in London have now reached £316.296, in Wales the price is £139,017 and the North West has an average price of around £131,294. Lenders have relaxed their lending criteria and offer up to 7 times salary for professionals with a rule of thumb of 5 times for single applicants and 4.5 times joint salaries. A fall in the number of first time buyers has helped fuel the investment properties and landlords are increasingly held responsible for keeping prices artificially high as first time buyers struggle to find apartments not already snapped up for rentals.
