Prime market remains stable

Published: May 13, 2008

The prime property market is in good health and is much more stable than the wider UK housing market.

That is according to London Central Portfolio (LCP), which said that repossessions and distressed sales at this end of the market are not common.

It is good news for anyone considering getting a mortgage quote for a top-end property.

Naomi Heaton, chief executive of LCP, said that prime property owners tend to look to the long-term.

"Prime properties are largely held by long-term owners, either as second homes or as rental investments, but they are unified by a low reliance on credit," she commented.

"Low loan to value ratios in well structured investments and long-term mortgages that have largely been paid-off mean that repossessions are minimal and distressed sales are few and far between.

"This means that the market is not being flooded with property, which would suppress prices," added Ms Heaton.

People who buy in theprime market are less likely to take out sub-prime mortgages, meaning they are also less likely to default on their payments.