Mr Stevenson’s ideas are interesting but are open to question. This is robbing Peter to pay Paul, merely switching one negative from one side of the equation to the other. Demographically it is just as likely there will be as many people trading down as well as up over the next 5-10 years and so if the seller should be discouraged from selling then supply will further dry up and prices will increase. This hardly helps the first time buyer and what also of those who have recently already bought and paid thousands in stamp duty only to face a second round of tax when they come to sell. There is also human psychology. Buying property is aspirational, people enjoy buying and owning a property of their own. The reverse can be said of selling. Most sales still tend to be as a result of death, divorce, or financial difficulties. A further disincentive to sell property will simply result in sustaining artificially high prices.

What is needed is a fluid market in which buyers want and are able to buy, matching or slightly exceeding those who want and are able to sell. This may appear simplistic but unless one begins from a common starting point all subsequent policies are bound to fail.

Forcing banks to lend has been on the agenda for some time while governments will be reluctant to loose vital tax revenue with a reduction in stamp duty. Equal emphasis, therefore, must be focused also on the seller, with billions locked up, but in a different way to that purported by Mr Stevenson.

First are those 5.5m homeowners who are “at risk of flooding” who might wish to move but are unable to do so. In June 2013 the present deal forcing insurers to provide cover comes to an end. There is an opportunity to look at this topic which needs a radical overhaul.

Second is the issue of empty homes. According to the Halifax this number is close to 700,000 in the UK but other sources which include flats above shops for example, say the figure is much closer to 1m. Whilst measures to force landlords to either rent out or sell the property would be welcome, geographical differences will have to be taken into account. Rows of derelict homes in Yorkshire (which has the worst record) may be harder to bring back into the market than an isolated flat in South Kensington. Nevertheless this is also an area that must be tackled with a firm brush, while not forgetting that the Coalition is keen to reduce legislation, not increase it.

Third is development on brown field sites. In England, 66,000 hectares of brownfield land (equivalent to an area the size of the West Midlands conurbation) are either vacant, derelict or available for redevelopment according to a survey conducted by the Environment Agency in 2001. While planning regulations for development on green field sites should either remain unaltered or even bolstered, we should ease those areas of red tape concerning brown field sites which are where new and more affordable homes can and ought to be built. This may also help to avoid development on flood plains.

The macroeconomic effects of helping people to move will manifest itself over time so while we can agree with Mr Stevenson’s switch of focus to the seller we should be careful lest in paying Paul, we drive Peter into refusing to sell.

Early signs for 2012 show that this year will also be a game of two halves. Estate agents know that their effective marketing window, if they are to clear the backlog as well as give themselves time to sell the new instructions, will be from February through till May. April and May will be especially busy as gardens come into their own and these eight weeks should be enough time to sell even the most camera shy homes. So, assuming we do not have some late snow (never ideal for property particulars as it dates so easily) or the euro lurches further into crisis, or Iran decides to block the export of oil coming out of the Gulf, then we can expect a busy Spring. Thereafter, most vendors may as well find something else to focus their minds as the levels of activity will become swamped by the Jubilee, European football and the Olympics.

Midgham in Berkshire is due to see at least three £2m plus houses come to the market in the next few weeks so if that trend is reflected elsewhere, then vendors will need to be price aware if they are to sell this side of June.

Details are lacking but what has come out is giving estate owners nightmares, and ought to give anyone looking at rural house prices plenty to think about. The party has announced its support for a 0.5% tax on the capital value of land ‘over a certain acreage’. At any likely minimum acreage, the effect on land and house sales, and values, could be dramatic.

Whilst it may seem radical, the idea of taxing land value is not new. It featured in Lloyd George’s ‘Peoples Budget’ of 1911, when it was blocked by the House of Lords. The notion that the economic rent of land should be shared by society was  widely held in the 19^th century, when the economist Henry George argued in his bestseller ‘Progress and Property’ that a land tax would eliminate the need for any taxes on productive activity.

The fact that the Lib Dems support this proposal might suggest that small owner occupier farmers in the West Country and the Celtic Fringe, (traditionally Liberal voters), would be exempt. That might set the minimum threshold at above a few hundred acres. Howls of protest from struggling owner occupiers in the rest of the country might force it higher.

If the Lib Dems are at all serious about this proposal they must have ‘landed estates’ in their sights, and presumably calculate that these owners can either pay, or will sell up, to neighbouring farmers or house owners, many of whom will then let the land, or have it farmed on contract.

According to Labour party research, in the 1970s a mere 200 families owned 32% of Britain (18 million acres). Whilst some of those holdings may have diminished, average farm sizes have grown. Whatever the cut off point might be for the putative land value tax, a taxable ‘level of acreage’ would surely apply across much of the country.

Judging by farm incomes the tax would turn farmland into an unmitigated liability for many owners.

For example, the Hoddington Estate, in north Hampshire, has been on the market since May. The 800 acres comprise approx 400 acres of arable and 400 acres of woodland. The estate relies heavily on the European Single Farm Payment to make ends meet. Net income from the land is £50,000 of which 95% is the Single Farm Payment. This estate has survived by diversifying and converting the stables into 12 let cottages attracting an annual rent of £127,000 per annum. However, in so doing the estate provided work for the local builder, affordable housing for local people and taxable income for the government. The NFU has stated that these subsidy payments to farmers are “in grave doubt” from 2015 onwards. Pressure from Europe may also see a cap on payments over a certain acreage, so large estates will suffer disproportionately. Couple this with a land tax and the effects could be catastrophic. One way or another land owning families will bear the brunt of what will be a severe and unsustainable tax on land, the income from which already attracts income taxation. A firesale of landed estates faster even than in the late 1940s might be popular with first time buyers of cottages, if not with their current owners.

Would a general public enamoured of Downton Abbey and other celebrations of the class system baulk at the idea of a tax that might be the death knell of ‘landed families’? The public probably has little idea how slender are the margins on landed estates, or how much they depend on subsidy. Letters to the editor labouring the point might not win landowners much sympathy but their often considerable contribution to local communities ought to work in their favour.

Perhaps part of the reason for the landed gentry’s lingering popularity is that we can easily imagine them being replaced by Russian or Middle Eastern oligarchs. Mrs Polouvicka and her son Richard de Vere in ‘To The Manor Born’ is a popular, but counter intuitive example of wealthy foreigners who endear themselves to the locals. However, the thought of a wholesale foreign takeover would probably still raise concern.

In the 1970s the Labour government started to monitor the nationality of UK farmland buyers – in response to such concerns. If the public can be spooked with a vision of a countryside of gold plated, gated communities, an extension of Knightsbridge and Belgravia, rather than a reversal of the Enclosure movement, (as the Lib Dems may try to convince us), the land tax may be averted.

It’s a situation that Francis Long, director of the high-end buying agency Hanslips, believes could be disastrous if combined with reductions in EU grants for farmers. Long quotes the National Farmers’ Union as saying that the European Single Farm Payment system is “in grave doubt from 2015.”

“A land tax, mansion tax and the withdrawal of subsidy could mean a notable increase in big estates being chopped up,” Long says. The result, he says, would be the opposite of what advocates of wealth distribution hope to achieve. “A lot of estates support the local community” he says, citing two examples in Berkshire, Englefield, owned by Richard Benyon, the MP for Newbury, and Yattendon, owned by Lord Iliffe, which subsidise housing and facilities such as pubs and post offices.

The likely result is, according to Long, a “wholesale foreign takeover” of our finest country houses. “If our landed estates go under the hammer, who will step in? Russians. Do you really think they are going to be pumping lots of money into the local community? Not a chance.”

But wouldn’t oligarchs be put off by a punitive tax regime in the same way as the English landed gentry? “It’s all relative,” Long says. “Would they rather have their money in a rather desperate bank in Damascus that might disappear overnight or in an English country estate? I was with a Lebanese buyer yesterday in Mayfair. He was a bit concerned about prices but he’d rather be here than in Beirut.”

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The equilibrium is beginning to alter however. Winkworth’s latest quarterly review shows that the number of foreign buyers in central London has fallen by more than half (56%) over the last four months as the economic conditions which made London property such an attractive investment option subsided.

So what can we expect to see over the next six months in prime parts of London? Transactions will remain at desperately low levels with both buyers and sellers in short supply. But do not expect prices to continue their upward spiral. Prices outside London continue to drop/stagnate and this will encourage more sellers in London to move out, taking advantage of the differential. Buyers should remain patient and take advantage of better buying conditions this autumn.

            Changes to the French wealth tax system could make waves this side of the Channel. From January 2012 non-resident property owners will be paying considerably more tax. The French Government is closing a holding company loophole, used by wealthy property owners to avoid tax, and is also introducing  a 20% tax on  theoretical rental values. This will apply to non-residents who own second homes that are not let out. It might be a vote winner with some locals who will welcome any exodus of foreign owners.

Now the Spanish are also getting tough on second homeowners. Plunging property values have produced a situation where some foreign vendors of second homes are being penalised. The Spanish tax rules mean that capital gains are taxed at an “official” valuation which may not be same as the actual sale price. It seems that Spanish nationals routinely under-report these valuations, whereas foreign vendors, less attuned to the ways of the Spanish tax system, have been caught out.   Officially prices have fallen 20% since 2007 but in reality many properties have fallen by up to 50% and as a result Britons who were forced to sell below their “official” valuation are being chased for additional tax, months or even years later.

            In these difficult times, our own government may also be tempted to pick on easy targets like second homeowners and foreigners. Don’t forget that David Cameron, only a year ago, was reportedly willing to see CGT for second home owners go up from 18% to 40% or even 50%. It hasn’t happened yet, but with the economy stabilising, the government may wish to take another look at that option. Pressure is likely to mount for second homes, estimated at 245,000, as well as empty properties, estimated at 870,000, to contribute more to the economy. Should this result in increased supply, prices will be under further pressure.

1. Before you start looking make sure you have a solicitor and surveyor ready to act on your behalf.
2. If you require finance ensure you have a mortgage agreed in principle.
3. Do not rely on websites to keep you fully informed as to the latest properties coming onto the market. Estate agents are not obliged to post new properties on websites. They may not do so as they think it would create unnecessary work arranging viewings, when they believe they already have prime buyers for the properties in question. In these instances, some properties may never appear on the ‘open market.’
4. The majority of properties are still bought through an estate agent. When registering with an agency, ensure contact is made with one individual who will then feel responsible for keeping you informed, and try to be in regular face to face contact with that person. This will raise your profile; one survey in January 2011 found that less than 50% of prospective buyers kept in ‘repeated’ or ‘regular’ contact with an estate agent.
5. Make a note of who the manager is in the relevant office. This person often does the valuations and will likely have advance warning if suitable properties are due to come to the market. He or she should also be up to speed if your original contact is away on holiday or ill.
6. View a property at least two or three times if you feel it might be a possibility. View in the dark, in daylight hours and at weekends when traffic and wind direction will all vary.
7. Natural light and aspect are important so bear in mind the property may look  different in winter, with a low sun and leaves off the trees.
8. Avoid wasted journeys. You may well wonder, having registered, why the estate agent still pleads with you to view a property that you are convinced is inappropriate. The estate agent, however, may need to convince their client that the asking price for a property is too high.  They can often only justify recommending a reduction in price after a minimum number of viewings.
9. Ask the right questions. You must ascertain the motivation behind the sale before making any offers:
   1. How long has the property been on the market and how long at this price? Have there been any offers? If the property has been on the market for several months and with more than one agent, there may be scope to negotiate the price down.
   2. Why are they selling? If it is because of unreasonable neighbours then you need to know that. Could be a divorce situation, where it is also worth knowing that BOTH parties are happy to sell.
   3. How long have they lived there? If only a few months, you may need to delve further.
   4. Where are they moving to? If they have nowhere to move to they may be less willing to negotiate on price. If they have already completed on a related purchase, and are subject to a bridging loan, they should be keen to sell.
10. Try and differentiate between negative points you can put right with money and those you can’t. If the property needs a new kitchen and bathrooms, this can be rectified. But pylons, noisy neighbours, poor light, footpaths, and north-east facing gardens seldom can.
11. Your initial offer is likely to be rejected. If you make an offer at the asking price, try to insist on some favourable conditions such as deadlines and what you wish to include, (eg the curtains or AGA) A low offer should soften expectations and may help to ascertain the seller’s bottom line. Under the Property Misdescriptions Act 1991, any offer you make must be submitted to the owner by the selling agent.
12. . Under offer (sale agreed subject to contract) does not equal sold and unless you insist on the property being withdrawn, the estate agent may continue marketing it. Until you have exchanged contracts you can still be gazumped by another buyer so you must keep the period between the property going under offer and the exchange of contracts as tight as possible. Agree with the estate agent in writing as to when you and your solicitor hope to exchange, what is included/excluded in the sale and for what period the property is to be withdrawn from the market. Make sure your solicitor has received a ‘full package of papers’ including the registered title deeds before rushing in to do the survey. It demonstrates a degree of commitment that the vendor is a serious seller and is less likely to let you down.