House prices down but buyers should be wary

You may have noticed headlines last week telling us that the housing market was stabilising and could be showing early signs of recovery.

This story was covered by the same newspapers that trumpeted their property supplements at the height of the boom, so you’ll understand why a sceptical eye is needed when absorbing their views.

Buying a house is one of the key asset purchase decisions any citizen will likely make in a lifetime. It gobbles up an enormous amount of savings, requires a relatively large lump of borrowings and has a critical effect on your quality of life. Pulling the trigger on a house purchase, therefore, needs cold analysis.