Could landlords benefit from two-tier market?

Buy to let insurance customers may be able to benefit from the indications of a two-tier housing market reported by property website Zoopla.co.uk.

It was revealed that while the real estate sector is stagnating in most areas, higher-end assets are performing well.

As many as 26,744 British property millionaires were created this year, with the average value of a home that costs over £1 million now standing at £1,688,379.

This shows there has been a rise in prices among abodes in this very high end of the market, which were typically going for £1,657,858 a year ago.

While this is happening, the average value of a UK home has fallen by three per cent in the past 12 months to reach £221,128.

Nick Leeming of Zoopla.co.uk explained: "At the upper end of the market, cash and equity rich buyers are enjoying some of the lowest mortgage rates in recent history. And strong demand from overseas buyers has boosted prices for homes in the capital."

This could be good news for buy to let investors who have been able to buy up properties in London and also those who want to extend their portfolio while the cost of most houses is down.

Renters may also be rushing to get into rental accommodation at the moment, as FindaProperty.com said this is a good time to move to a new leased home, as the amount charged by landlords tends to dip at the end of the year.

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Posted by Luella Ravelin