Middle classes property prices worst hit Friday, 27th March 2009

The value of family three and four-bedroom houses has been the worst hit in the housing market slump according to a report that comes form the National Association of Estate Agents.

The association said that top-end, executive properties had increased in value between January and February. The same was true of smaller, two-bedroom homes.

There appears to be a trend for people buying up smaller houses than they may have done previously, possibly because they can only get smaller mortgages. It may also reflect a trend of downsizing.

Unfortunately sellers are consistently over-pricing properties.

And to make matters worse and in another blow to would-be buyers, the UK's largest building society the Nationwide has announced it was increasing its mortgage rates for new borrowers by up to 0.3%.