With concerns regarding the economy, household income falling, unemployment on the increase and mortgages becoming more difficult to come by, the housing market is under pressure. However not all analysts are equally gloomy regarding property prices – here are some of their predictions for house prices in 2012.

The most pessimistic analysts predict that house prices will fall by around 10% in 2012 while the most optimistic are predicting a fall of around 2%. Others come in between with offerings of reductions of 5% and 7 %. Taking the average of the predictions, the change is likely to be a reduction of around 6%.

However these figures exclude London where prices are expected to remain fairly static over the year with at most reductions on average of 1% to 2%. Property at the top end of the market might even increase in value.

Whatever the average changes, there will certainly be significant regional variations. The South and London will come off the best, whilst the north will fare the worst. However it is not just a north south divide; house prices in the southwest are expected to fall sharply.

One thing that is maintaining the value of the housing stock is the very low interest rates that have been prevailing for some time. Should they increase to average values, then that would have a significant negative impact on house prices. Another is the fact that there is an overall shortage of housing stock in the UK, though currently there is a glut of property on the market. As every estate agent knows, the most desirable properties within their price bracket move very quickly.

Should we be concerned about this? In many ways falling property prices are not bad news if we consider our property as a home rather than as an investment. There is little value in hanging on to see what happens. The one thing to avoid is getting in too much debt and finding yourself with negative equity. It is of little surprise that mortgage providers are demanding that buyers have significant deposits.

Finding new homes for sale can often be difficult, especially in the current market. With house prices seeming to rise every week, it can be a mission getting started on the property ladder especially as a first time buyer. The difficulty can increase if you have a family. A lot of people are choosing to find their own way by searching for their new house online. Sites like FindAProperty and S1Homes mean there is no trailing from one house to the other, dragging tired and probably screaming children only to find that none of them have what you’re looking for. Sit in the comfort of your own home, have a look at the properties available and see what they have to offer before you get in the car and go have a look for yourself.

It’s a good idea to research thoroughly and don’t forget about hidden costs such as ‘stamp duty’ (land tax on properties worth over a certain amount) as this can catch you out and add quite a bit to your price.

As we know, location is a big deal houses and apartments in higher demand areas demand a higher price. Research your chosen location, but try not to be inflexible. You could get your dream home for quite a bit less if you’re willing to bend a little and perhaps live a few (not too many) miles out of the area you’d decided on.

There can sometimes be quite a difference in interest rates and flexibility of mortgages, depending on who you go to. There are loads of different kinds to choose from, such as fixed rate, interest only, 100%… It can be overwhelming. Most banks will offer free advice to help you discover the best deal for you bu do bear in mind that most of them are extremely biased. Why not try comparison websites to give you an idea of what would suit you best, and to get the best prices available.

Now more than ever, a good house insurance policy is essential to protecting ourselves against financial disaster. If you are contemplating whether house insurance could be just another cost worth saving you would be wise to consider the implications of not having it. True, insurance can be one monetary outlay with often no visible return but that may be missing the point, so here are 5 good reasons to buy comprehensive house insurance:

1) We live in the consumer age and our valuables are worth a growing fortune. Electric gizmos and gadgetry can often amass a value into the thousands. Technological advancement has given us MP3 players, DVD recorders, PC’s, laptops, stereos, widescreen TV’s, DAB radios, and a multitude of pricey commodities which we can easily undervalue. Fire, flood or burglary could wreck this veritable treasure trove and leave us counting the cost.

2) House prices are reaching record levels and it would be reckless to risk the most expensive purchase you’ll ever make burning down with no financial reward. Buildings Insurance covers against threats such as fire, exposure to the elements, accidents and any damage that may occur to fixtures and fittings.

The differences between Contents Insurance and Buildings Insurance are evident in their names. They are complimentary policies and sometimes when you buy buildings insurance, the broker might offer you discounted Contents Insurance.

3) A good Contents Insurance package can even insure the goods we carry around on our person. In the modern world we may well be transporting smart-phones and laptops worth several hundred pound from venue to venue with little regard for their true worth.
4) A comprehensive house insurance package gives us peace of mind in a stressful world. Even if you never claimed on your house insurance policy, it gives you one less thing to worry about.

5) House Insurance can cover you against accidental damage. Accidental damage is common to us all and house insurance doesn’t have to be about averting the ultimate disaster; it can be most effective at limiting minor damages. Some insurers will replace damaged goods for new equivalents, others might pay out.