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Property market good for the long-term
From: Andrew Beadnall, Partner, Beadnall Copley, Market Place,
Wetherby.
I WRITE to object to the use of the headline and terminology of your
front page lead story (Yorkshire Post, April 28) of "negative
equity" and "tumbling house prices" which is simply not
factual.
The definition of tumbling is to "fall rapidly in amount" and "fall
headlong" this is not the case in the property market where, at
worst, reports indicate some house prices have seen a reduction of
only one per cent over the last 12 months.
With an average house price of £200,000, this equates to just
£2,000; balanced against the incredible gains over the last few
years, where house prices have doubled, this is negligible.
Reputable sources believe the property market will hold firm this
year with some predicting an increase of up to five per cent by
January 2009.
Talk of negative equity is sensationalising an issue that is
possibly facing only a small proportion of the population; in the
case where people have a 100 per cent mortgage and have bought in
the last year, the potential losses are very minimal. However, the
property market should always be seen long-term with people moving
on average every six to seven years, they will always see good
capital growth and return on investment.
As an estate agent, I obviously have a vested interest in wanting to
see positive news about property, but that is not my sole concern.
The market does not work in isolation and incorrect, "bad news"
headlines and stories that don't reflect the facts have
repercussions on the economy as a whole.
The only issue with the property market at the moment is confidence
and this has been knocked by the scaremongering of sections of the
media who evidently favour the glory of bad news to the responsible
voice of
factual reason.
Press Contact: Susan Goss-Clements:
Direct Line: 01423 339725
M: 07719 569088;
E-mail: sgc@20-20group.com
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