Property indices have been friend and foe to estate agents over the years, but the recent turbulent market has created sharp contradictions which have caused me on many occasions to question their reliability and accuracy.

According to Knight Frank’s recent Property Sentiment Index, property prices fell for the 20th consecutive month, yet Rightmove’s latest House Price Index shows asking prices seeing their sharpest rise in ten years. This kind of contradiction reported across the country only creates confusion with the general public and uncertainty in the market.

The property market is built on confidence and, like every other economic market, is easily influenced by positive or negative market sentiment.
All of the monthly indices utilise different sources of data and represent different stages of the buying process, something that the public doesn’t necessarily appreciate.

Whether it’s asking prices (Rightmove), industry or general public market sentiment (RICS / Knight Frank), mortgage approvals (Nationwide, Halifax) or transaction prices (HM Land Registry / LSL Academetrics), the wealth of indices and their vast inconsistencies have a huge impact on the market.

Although a national perspective is useful for property investors and industry professionals, it is important to remember that for most people reading these headlines, their property is their home and their main asset.

Yes, buying a property will probably be one of the largest investments most people will ever make, but I am constantly reminding buyers that this will be their home first and foremost. This sounds very simple and straightforward, but I think households across the country have lost sight of that.

Micro-markets exist not only in every town and city but even street by street, and it’s our job at the sharp end to understand these markets and advise clients appropriately. Defending the latest news agenda is something we are quite used to doing.

If a buyer falls in love with a property and buys it, does it matter that in six months or a year’s time, the price might have dipped by 0.5%? No, I would hope they will stay there, add value and enjoy their home for a number of years before starting to worry about the market again.
As experts in the housing market we should be advising our clients to take these indices with a pinch of salt and concentrate on the basics of what makes a property a good investment and mostly importantly a home.

* David Pollock has published his first book, ‘101 Things Your Estate Agent Should Tell You’. Click here to buy on Amazon.

Source: www.estateagenttoday.co.uk

The Government’s holiday on Stamp Duty Land Tax will come to an end in just under two months’ time, on Saturday 24th March 2012.

Wendy Evans Scott, President of the NAEA said: “With only two months remaining, first time buyers must act quickly to avoid paying Stamp Duty Land Tax on their first home purchase. If you’re currently in a chain and waiting to complete your purchase then make sure that others in the chain know about the end of the tax holiday too. Good communication with your solicitor can help move the process forward, helping you beat the 24th March cut-off.”

After the tax exemption has come to an end FTBs will face a tax of one per cent on house purchases between £125,000 and £250,000, and a three per cent tax on purchases over £250,000.

The NAEA’s recent figures show that the number of sales to FTBs edged up during November and December from 19 per cent to 21 per cent of sales per branch. However FTBs still represent a low percentage of overall property sales, and NAEA data shows the number of first time buyers getting on to the housing ladder hit a three-year low in October, at just 16 per cent of sales.

Mrs Evans Scott continued: “First time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many FTBs are keen to purchase their first home before the tax exemption deadline.

“However, it is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom the one per cent tax could be disastrous. The Government will need to monitor sales closely and consider other action to support the fragile first time buyer market.”

Source: http://www.housefund.co.uk/2012/01/25/less-than-2-months-left-first-before-time-buyers-stamp-duty-holiday-expires/