Property points

Low inflation, low rates


Last week's low inflation rate is good news for homeowners wanting a fixed or discounted mortgage. David Hollingworth of broker London & Country says some lenders are already anticipating a drop in base rate by cutting their special rate deals. Those that have include Yorkshire, Standard Life, Halifax, Nationwide, Cheltenham & Gloucester, Alliance & Leicester and some of Northern Rock's range.

It pays to be choosy

Homebuyers worried that prices may be about to fall should try to follow buying tips drawn up by the Home Sale Network, an association of 680 independent estate agents:

1. Be cautious about areas where employment is dependent on one industry. A sudden plant closure and mass redundancies can hit house prices hard.

2. Consider areas where major house builders are developing new sites - astute developers invest in areas seen as having the strongest market potential.

3. Avoid busy main road locations - the traffic is unlikely to get any better.

4. Pick somewhere with good trains and buses. It may not matter to you, but it could to future buyers.

5. Don't go for the cheapest or most expensive house in a street - they will be more difficult to sell.

6. If possible, go for a garage or ample parking.

7. Buy in the catchment area for good schools.

8. Look for a spacious, light and airy kitchen.

9. Have the ability to turn a room into an office - home offices will be increasingly valued.

10. Check out the neighbours. Your home's value can be affected by the state of the surrounding properties.