The flat

Nicola Blackwood, 24, and Graham Walker, 23, bought their two-bedroom flat in a high-quality new development in Glasgow last May for £178,000. They know that the value of their home has gone up slightly because similar flats in the same building have been sold recently for about £185,000. They are fortunate: flats in city centres are falling in value because of oversupply, with one auction campany suggesting that on average they are now fetching 26 per cent less than their original price.

Ms Blackwood is happy that they bought when they did. She says: “We were lucky to secure a mortgage before things got really difficult, so we feel glad to have got on the ladder when we did.”

Are they planning to move under the circumstances? “When we bought we set up a good fixed-rate mortgage for two years, so we have just over a year left on that rate; but if we can’t renew at a similar rate when it runs out then we might have to move out. We hope to live here for longer; if mortgage rates stabilise then we will try to stay on. We’re not married yet, so circumstances might change in the future and then we might want to move.”

Small house

James Lovegrove, 25, bought his three-bedroom terrace in Leeds six months ago, having sold his house in Sheffield at the height of the market. Mr Lovegrove won’t say what he paid, but a typical price would be £165,000. The Halifax suggests that prices in the area have dropped by 0.5 per cent this year, but Mr Lovegrove is relaxed: “We bought in a good location and have a manageable mortgage. It’s really going to hit those who borrowed beyond their means.”

The large detached house

Rhoda and Adam Richardson, who have a year-old son, sold their three-bedroom flat in Bayswater, West London, for “just under the asking price” of £1.15 million, and bought a six-bedroom house in Sevenoaks, Kent, for “well over £1 million” in November. Mrs Richardson has “no idea” if the value of her home has gone up or down and is unconcerned that she may have bought at the peak of the market. “What’s important is that we sold at the peak in London, and that was the only reason we could afford such a big house.” The family intend to stay put for at least ten years, and they say that changing values are “neither here nor there”.