[Mitc]

Negative equity in the 1980's was linked to the high interest rates charged at the time, coupled with a recessive economy. It's hardly sensible to compare that to todays situation.

The actual gist of the message was that house price rises would begin to fall to a rate at or around the rate of inflation. Houses will get dearer more slowly.

House prices are at the mercy of the estate agent, here's a quick example.

We sold our 3 bed house in Bristol in 1993. We had four estate agents visit to offer valuations.

1) "You need to tidy that up, finish this, redecorate that. Maybe £113,000.

2) "How much do you want to sell it for?" We said £130,00. "I can sell it for that" (No valuation offered).

3) "It costs a fortune to print details in colour and we only advertise in local papers". Value £125,000.

4) "Wow! I love your house! Your gardens great, the bathroom is fantastic. Anybody would love to buy this house. £150,000 easy."

There you are then. £37,000 difference between the highest and lowest valuation.

Guess which one we choose to market the property? (Before anyone quips about asking prices and selling prices, we sold for £145,000 two weeks later.)

Buying a house is a massive investment of money, time and effort but the overiding trend is rising house prices. If your prepared to risk waiting for a fall off in real terms your risking years of waiting.