HOUSE prices go up and down just like the stock market and other commodities and all prospective purchasers should be aware of this. However, although a drop in house prices is a concern, it should not create a nightmare. As a nation we need to move away from the idea that property is pure investment, the unsustainable days of buying a house and selling it 12 months later for a huge profit are thankfully over. The intention with buying a property is that you have a roof over your head. We don’t, for example, expect to make money when we rent a property or even get the money back we paid when we move out.

Some first time buyers are nervous at present. Yes, it can be more difficult to get a mortgage, with some lenders requiring larger deposits and a high credit score. However, speaking to an independent financial advisor with access to all the products in the market and sound financial acumen should be your first port of call.

As mortgage funds become plentiful again, albeit on more stringent levels of criteria, first time buyers will again enter the property market but the sale price of their property purchase needs to be affordable. This may well lead to a downturn in property prices but if reflected all the way along the chain it makes little difference to the majority of home owners; as other agents have said in this column in previous weeks the message is to buy and sell in the same market place. If you have to reduce your price in order to secure a sale your agent should hopefully be able to negotiate this along the property chain for you. To all vendors we would say speak to an agent and ask for a realistic valuation in today’s market. If your property has been on the market for more than a few months the chances are you will need to revisit your asking price. Next look at your onward purchase and ask the agent’s advice on realistically what you could look to purchase it for, in today’s market buying and selling is not so much about what you sell for as it is about making the figures work for you.

To first time and second time buyers we would say it is a buyers market, but firstly and importantly speak to an independent financial advisor to discuss your finances and get a mortgage in principle agreed, then start to talk to agents about properties where vendors are motivated to sell or where a good deal could be secured. Regardless of equity we should buy our homes for what they are – a place to relax, sleep, entertain, raise our children and live our lives, not purely as a money making vehicle.

An Englishman’s home is his castle, so buy a home that you love – be it a castle or a shed – and you won’t lose out.