by Patricia Oberman

the value of your house is unlikely to turn to rubble

Regardless off your position on a potential property crash, there are many wise words you should listen to in this time of uncertainty:

- be very cautious about joining those individuals who have sold their house and are now renting in a effort to avoid the crash. If doomsday doesn't happen you will find yourself out of pocket and possibly a step lower down on the property ladder
- if you have money to invest, use it to pay off part of your mortgage. This can work at as a overall return on your capital of nearly 9%. What other risk free investment gives you that?
- if you are looking to buy, choose you area very carefully. Look for up and coming regions and avoid those areas where house prices have already gone through the roof.
- sell your buy-to-let property because there is little scope for further property gains.
- if you are contemplating moving out of London, do it now. Even taking into account the prestige of the capital city, London property prices are way out of proportion to the rest of the country. A crash could have a huge impact on some of these city homes.
- if you can possibly avoid it don't buy a one-bedroom or a studio flat. These properties are always the hardest hit when the market switches into reverse.

But is a crash actually going to happen? What do the experts say? The average 2007 regional forecasts of the leading mortgage lenders in the UK is as follows:

- London: a fall of 2%
- Wales: a rise of 1%%
- N. Ireland: a rise of 5%
- Scotland: a rise of 4%
- North of England: a rise of 2%
- Yorks & Humber: a rise of 2%
- North West: a rise of 2%
- East Midlands: a rise of 1%
- West Midlands: a rise of 1%
- East Anglia: a rise of 1%
- South West: a rise of 1%
- South East: a fall of 2%

As you can see there aren't huge gains or losses predicted. The biggest fall in prices is just 2% for London and the South East of England. This is a million miles away from a property crash. Why is this? The property market crashed in the 1980's so why isn't it going to crash now? The experts believe there are three fundamental factors which are supporting the housing market and will ultimately stop a collapse to occur:

So there is no real need to worry? If you are a homeowner then yes. Although anything is possible, a sudden property crash in unlikely. However, if you're a first time buyer the outlook is not so secure. Despite the forecast of lower interest rates during 2006 there are still huge difficulties facing those people trying to get on the property ladder.