A Question of Finance: Not all doom and gloom (From The Northern Echo)

A Question of Finance: Not all doom and gloom

9:03am Friday 31st October 2008 in Search

TO buy or not to buy? That is the question.

Well to be honest, it is all a matter of personal opinion and whose statistical figures you chose to believe. It is hard to comprehend the distortion between sources and also geographical areas. In my opinion, it is not all doom and gloom.

Television media and the national press are always quick to provide the public with “national averages” and “statistical information”

regarding various issues.

Every week we have a new announcement.

Property prices, unemployment, inflation figures, mortgage availability. The list goes on. While these are useful as a guide, it should be remembered that primarily we should be concerned with our own circumstances in our towns and how we are affected in the North-East. So how are we fairing against these so-called averages?

If you use the Halifax House Price Index as an example, UK prices have fallen by 12.4 per cent in the past 12 months up to September. This is not great, I admit. However, the entire North region has only fallen 9.3 per cent, and only 0.3 per cent in the last quarter against a UK-wide figure of 5.2 per cent.

If we compare this to the Land Registry House Price Index data issued earlier this week, the figures are even more positive, and probably more relevant to you and I, as we can break it down into local authority areas. According to these figures, the UK as a whole saw property prices fall by eight per cent in the past 12 months. Now the better news. If you live in Darlington, the fall is only four per cent, Redcar and Cleveland 4.1 per cent, and Stockton only 1.1 per cent annual falls. Middlesbrough suffered worst with 8.3 per cent falls.

To me, that reads that we in the North are not fairing too badly compared to some, but did you know about it? Probably not.

I am not alone in my thoughts either.

Mike Charlton, owner of Charltons Estate Agency said to me recently that national statistics should be ignored as they simply put fear into the market. If you are after a real figure for your own personal circumstances, consult a local agent who knows the area and individual properties better than most.

● Karl Pemberton is director of Guisborough- based Active Financial Services. He can be contacted on 01287-632367 or through activefinancialservices.co.uk and will be answering readers’ financial questions in a bi-weekly column.

Any topics you would like to see featured in his column should be sent to echobusiness@ nne.co.uk

■ The information contained in this response should not be relied upon as general advice and is for general information only. We always recommend you seek independent financial advice before embarking on any financial decisions.