The housing market has been described as a "never-ending circle" for mortgage borrowers by a property specialist.
According to a representative of Ludlowthompson, young professionals are going to dominate the properties bought in London, with families eventually being priced out of the city.
However, young property developers and buy-to-let landlords are also likely to snap up properties to rent out to young professionals who can't afford their own home, in a "never-ending circle".
"The reason that prices have gone up so much in the last 12 months is that everybody's thought that they'd be priced out in the next 12 months so they jumped on the bandwagon," the sales manager of the Tooting branch of Ludlowthompson, Alexander Rawlinson, commented.
Mr Rawlinson added that the price difference between a two-bedroom flat and three-bedroom house could be as much as £160,000, with families likely to move out of the city in coming years due to rising house prices and also concerns about their quality of life.
The most recent Halifax house price index has found that house prices rose by 0.4 per cent last month to reach an average of £199,770.
Expert: Housing market is "never-ending circle"
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Expert: Housing market is "never-ending circle"
Mon, 10 Sep 2007
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