After the headlines in last week’s national press, I doubt if there is anyone in the country who has not heard of Northern Rock. We will have to wait and see if they are taken over by another bank, but if you are one of their customers, how does it really affect you?

If you have a mortgage or a loan with them, do not worry. The interest rate may change with the market, but your monthly repayments will continue. You can rest assured that you won’t get a letter demanding you repay it in full.

Savers who avoided the temptation to join the thousands queuing to withdraw their savings from Northern Rock, the Bank of England came to the rescue and guaranteed the full amount in the account. Those who closed their accounts and re-opened them are also fully protected. However, if you were not an account holder previously, but decided to open a new account and get the protection of this unlimited guarantee, the only guarantee that applies is that in effect before the Bank of England stepped in. That is, the first £2000 is guaranteed, and then 90% of the next £35,000.

The Northern Rock situation is not the only headline affecting property owners. As we suggested some time ago, now that Home Information Packs (HIPs) are a fact of life, the Government have already introduced changes. Originally it was only properties with 4 or more bedrooms that required an HIP, but from 10th September 2007 it became compulsory for any property with 3 or more bedrooms to have a HIP before it can be offered for sale.

These factors, together with rumours of possible interest rises in the future has resulted in a slowing down of the previously buoyant residential property market. When residential markets slow down, it often affects the commercial property market as well, and as Biggleswade is not a prime industrial area, this means mainly small businesses such as shops, pubs hotels and offices.

If there is a slow down in the property market, it would not be the first time. Many of us remember the late 1980’s when house prices fell, but they did recover and have continued to increase in value steadily since that time. If property prices plateau, or even drop slightly, it is unlikely that this will remain so in the long term. Our advice is to sit tight and in the words of Corporal Jones 'Don’t panic'. Most people view property as a long term investment, so short term peaks and troughs should not cause any major concern. It is only those who buy at the peak and sell when the market hits a low that can lose out.

If you need any further advice on conveyancing or HIPs contact Debbie Matthews or Stephen Frith at Motley & Hope . Telephone Debbie or Stephen on 01767 600600 or e-mail debbiematthews@motleyandhope.co.uk or stephenfrith@motleyandhope.co.uk.