Suddenly, the housing market doesn’t look quite such a bleak place. Recent weeks have seen a flurry of positive data — on everything from an increase in the number of buyer inquiries to a narrowing of the gap between asking and sale prices — prompting many analysts to suggest that the worst may be behind us.

Not everyone is convinced, of course. With the broader economy still in poor shape, any recovery is likely to be patchy — and fragile. It also risks being choked by a rise in interest rates, which could be sharp if, as many fear, the government and the Bank of England’s attempts to reinflate the economy fuel inflation.

If you are bullish about property, however, what can you do to take advantage of any upturn — and still not end up out of pocket if prices take a little while longer to rise?

BUYERS

Buying off plan

It might have been synonymous with the worst excesses of the boom, but could it be time to buy property off-plan again? The housebuilders Taylor Wimpey say they are noticing increasing numbers of people doing just that, while Andy Finch, a partner in the northern residential department of Knight Frank estate agency, says he has received several inquiries recently from investors. The advantages of buying a development before it has even been built are obvious — if you think the market is picking up, that is. “It’s a meaningful way of securing an appreciating asset,” Finch says.

They are not easy to find, though. “While we are pushing on with new developments, I see no logic in selling them off-plan at this stage, because you are selling them at the bottom of the market,” says Bob Weston, chairman of Weston Homes. That said, “if somebody is prepared to do it, the purchaser’s going to get a good deal”, he adds.

Choose carefully, avoiding city-centre blocks and locations where developers are struggling to sell existing flats. Weston suggests going for family homes, which will always be more in demand. Whatever you buy, make sure the developer is covered by the National House Building Council. This will protect your deposit if they go bust.

Buying land

Land values have fallen more sharply than house prices in the past 18 months, good news if you want to buy a plot and build your own home. “There is more land available than there has been for the past decade,” says Tim Doherty, managing director of the Self Build and Renovation Centre in Swindon. “The moment that the green shoots start to become a reality, we’ll see developers starting to move back into the market and the opportunity for individuals to acquire a plot will be reduced.”

There are two options: buying land without planning permission, which is cheaper, but riskier, or picking up a plot with consent in place (either “outline” or “detailed”), which will be more expensive, but safer.

This is a good time to build, with skilled labour cheaper and easier to recruit than in the boom years, and self-build mortgages relatively easy to get hold of. Alternatively, you could just sit on the land and sell it on without building on it.

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