BUY
DIRECTOR OF ESTATE AGENT, DOUGLAS & GORDON
Q.All my friends keep telling me that if I wait, prices will fall. It does seem that in my area, North Kensington, some properties are coming down in price. Should I wait?
A.Over the last 10 years, flats in the area you mention have gone up on average 79 per cent, according to the Savills Index. During that period there was one annual fall in values – otherwise it’s been a steady upward curve. Betting against that would seem counter-intuitive. However, a shortage of property and the frenzy among agents to get business has meant asking prices have gone too far – in fact, they’re at an all-time high. The result has been that buyers, still finding mortgages as difficult as ever, have said “enough is enough” and agents are being forced to be more realistic with sellers, bringing about some falls in asking prices. This may lead to individual situations where an owner is very keen to sell but, despite asking prices easing off, values are still showing a gentle upward trend. Make sure you can afford your mortgage and can live in your property for at least five years if interest rates rise (don’t forget that, despite three low years, more normal interest rates will take effect eventually).