The latest market report from Savills shows that prices across the UK’s prime markets fell by an average of 3.3% against an increase of 8.7% across all prime London and 14.1% in prime central London. Very few areas outside London ended 2011 in positive territory. Only locations such as Sunningdale, Weybridge and Henley saw price rises, in the region of 2%.

Savills says that this was supported in the latter stages of the year by international equity, and makes this niche area of the country, its very top end in particular, pretty much the only location currently able to perform in line with prime London.

In general, the South East lost around 2% of its value as the traditional fuel of these markets, City money, was largely reinvested in prime London. ‘It’s not that domestic owners have stopped trading up, but they are trading up within London and the flow of City money that would normally be the lifeblood of markets such as Guildford is staying put,’ said Lucian Cook, director of Savills residential research. ‘The result is that the country is now looking better value than for many years, a factor that we would normally expect to stimulate buying activity,’ he added.

Realistic pricing based on current market conditions is the key to stimulating these markets. Set against the backdrop of a potentially volatile economic recovery only the best houses will command competitive attention in spite of the lack of stock and low transaction levels. Finding and securing the right home will take careful investigation and the application of time and energy. Nevertheless the South East, and especially the perennially popular towns, should outperform the wider market over the course of the next five years given a lesser reliance on mortgage finance and the natural ripple effect of housing equity from the capital.

If you have been thinking of escaping the smoke, perhaps now is the time to cash in on the London market and move to the country.

One reads of the monthly Halifax and Nationwide House Price Indices; however these concern the price of a typically transacted house rather than the price of a typical house in the property stock of a specific area. They do not (and cannot) offer a subjective estimate of quality or importance to the individual in their specific circumstances. Unless comparing apartments in uniform modern blocks, each property offers its own subtle differences, adding to the obvious differences of streets, towns and regions. Each must be judged on its relative value to and by the values of the buyer.

When considering buying a new home the first and most important question must be: Why? Followed closely by: When? Once answered satisfactorily these will help answer the next important question: Where? Then one can move on to the final major question: What? Clearly there are layers of detail that fall under these headings and a good search agent will help their clients assess and qualify the answers, which may be adjusted as the search progresses.

But the important thing is to develop a clear personal strategy and then the vicissitudes of the wider market and economy can be put in to perspective and managed accordingly.

Although there are some individual examples of the best houses selling quickly in competitive sealed bids, the norm seems to be that buyers are being cautious and not just jumping on anything despite a shortage of good quality family homes.  Potential vendors, seeing the lack of choice, should be encouraged to launch their sale, but instead are worried about there being nothing for them to buy, and so they hesitate and add to the log-jamb.  This is all contributing to the low volume of transactions.

With all the pressures on personal finance and continuing concerns about the state of the national economy, it’s easy to understand why householders might choose to stay put.  There are good reasons to be cautious, but much of this is straightforward common sense for prudent buyers in any market.  However, where there is a need to move the only sensible option is to get on with it and, perhaps more now than in the past, seek professional help and advice to take away some of the worry and stress over making the best purchasing decision.

Unfortunately the UK property market has in the recent past become all about how much money one can make and, a bit like the financial sector, that has blinded people and commentators to the fundamentals.  A house (or flat) is a home first and foremost; there to provide shelter, security and comfort.  Now that Spring is well and truly here (a guarantee that it will now rain all summer) let’s hope buyers and sellers can get on with their normal lives.

Clearly I have a vested interest in maintaining the house buying public’s morale, and encouraging them to engage the services of a buyer’s agent (me) in particular.  Nevertheless, one message that has come through clearly from the majority of signed clients and enquiries this year is that people are looking for a home, not some financial instrument to make a fast buck.  Of course no-one wants to think that the market value of the home they’ve just bought will tumble in the coming months; but neither is it practical to wait for the market to be “just right” if it’s time to move.  I think the consensus of opinion is that house prices will fluctuate for the foreseeable future – swings and roundabouts!