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12/11/07 - Stop Watching TV

Article by Steve Boxall

I am tired of being told how the market is according to some recent TV programme. I admit that I do watch and enjoy Grand Designs which is a well produced and very interesting programme. My wife, to my alarm, does watch Location Location Location but give me time and I will wean her off this.

The problem that I have and this is emphasized by so many property programmes is that they are very glib and generalise too much.

They refer to "the property market in the UK". This includes the south east, Middlesborough and heaven forbid Stoke on Trent.

Firstly, each region has its own peculiarities and indeed each city is different. Contained within each city are locations which are so popular that properties would sell even in a severe depression.

One week we are told that the market is in decline, the next week there is a programme on increasing population and the lack of housing.

Even basic economics starts with supply and demand with an increase in population and a limited housing stock demand does and will exceed supply, supporting price rises.

The property market in any location can experience slow times but past evidence shows that an average household living in a property for in excess of seven years will make money.

Houses therefore make good long term investment.

It's strange but most households are comforted by having a secure investment, but in reality a house is more than just an investment. It is a home, a place to bring up children, a place to have parties and build memories.

This is where the property media gets it wrong, they forget the human element, the desire to have a happy home, the need for certain facilities to suit their particular lifestyle, they also forget human greed. We are all the same in that when we sell our homes we do not want to lose money.

Furthermore, our property requirements change with our own personal journey through life, from first time buyer to old age. Some of these requirements are of necessity and when this is the case the investment element is not so important.

When this is the case these requirements certainly do not have anything to do with the south east.

Grand Designs is about desire, passion and vision and completing a project. Mostly in a very individual style. Don't ever forget there is a human element to every property transaction and an individuality to the location.

So treat the TV as what it is, a form of entertainment. If you want to know the facts relating to the market in your area, ask an expert.

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