Homeowners can no longer rely on rising house prices to trade up, says Location's Phil Spencer

Published 31st Jul 2009

The TV property expert who had his fingers burnt in the slump warned homeowners that they can no longer count on rising prices to help them trade up.

Phil Spencer, the co-host of Channel 4's Location, Location, Location, said buyers now need to look for homes that will accommodate them for years, and for properties where value can be added.

'You cannot rely on the market helping you to move in the future,' he said.

'It's not going to be enough to buy a property and think, I'll own it for two or three years, it'll go up in value, and I'll be able to trade up the ladder.

'That's not going to cut it any more. You've got to be more strategic. This is a long-term decision.

'Look for opportunities to add value; look for properties that can be adapted to meet your requirements as they change.'

The advice paints a gloomy but realistic picture for current buyers.

During the housing boom, many families were able to cash in on huge rises in their property's value in order to buy bigger, more luxurious homes.

Those who bought at the height of the market, and are now in negative equity, are in the worst position as they can see no prospect of trading up.

'I worry greatly about unemployment across the country and that brings forced selling and forced selling means repossession, so there will be some fairly serious heartache for people out there,' Mr Spencer added.

Mr Spencer had first-hand experience of the slump when his homefinding business, Garringtons, went bust earlier this year.

Source: ' Daily Mail '

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