House prices increase, so do my stress levels

House prices in England and Wales have just seen their biggest month on month gain in over six years. This has raised concerns about a possibly unsustainable housing boom, a sentiment heightened by the government’s much vaunted Help to Buy scheme - giving people the opportunity to take out a 95% mortgage – which has been brought forward by three months.

Others have dismissed claims of a so-called housing bubble, and the PM says the market’s recovering from a low base.

No-one can argue that house prices are rising though, and as such, those of us looking for that elusive bargain will be left disappointed. In fact, we should probably be more concerned about actually finding a suitable property, given the competition - especially in London and the South East, where prices have risen more than anywhere else.

My wife and I are looking to buy in London at the moment, and we’re finding that houses that tick our boxes – with our modest budget - are somewhat thin on the ground. Such is the demand that no sooner does a property appear on the market, it’s gone five minutes later, and we've missed the boat. Already, we've missed enough boats to fill a harbour. Thing is, as soon as we do actually get a sniff, talk of even a penny off the asking price will be met with derision, given how many others will be vying for the same property.

I was told last night by an estate agent that the sort of house we’re after “will be gone before it gets to the internet”. So I asked him not to let it get to the internet then. Just shows you what we – and thousands of other house buyers - are up against.

Down on the South Coast, where we’re looking to sell, it’s a different backdrop. The market’s picking up, but not to the fevered extent we've seen in London. Because there’s less competition, prospective buyers are taking a chance with bids that are certainly cheeky, and border on the derisory. 10% off the asking price? You’re having a laugh.

But that’s the game we’re in. It’s brinkmanship writ large. There are tactics, sometimes verging on the nefarious, and haggling which seems not to get you anywhere.

Even if someone viewed a house that was on at £300,000, and totally fell in love it, they wouldn't let you know it. If you did, you’d feel that they should be willing to part with the asking price. No, they’d coldly issue a bid for £280,000. Now, you’d be very unlikely to accept such a bid, but they've set their marker. Anything above that’s a bonus, right? That’s the psychology of the whole thing. The game is on, and the question is who will crack first, the buyer or the vendor? Who will push the other the furthest? The art of negotiation is risky, and the stakes high. But with prices as they are in the capital, London’s vendors can afford to be more stoic.

Making sure the price is right is just one aspect of what’s referred to as one of the most stressful things we can do. There’s the solicitors, the surveyors, the exorbitant amount of time it all takes to go through, and the thought at the back of your mind that someone will pull out at the very last minute, leaving the whole thing to crash down. What fun...

Wish us luck. We’re going to need it.