Property blame game: Kirstie Allsopp or Amanda Lamb

Property programme presenters have attracted criticism for their part in blowing up the bubble. Fair or unfair?

Kirstie Allsopp, of Location, Location, Location, fights her corner today in The Times:

'It's plain silly to point the finger at these programmes for puffing up the property market, forcing people into taking out massive mortgages or into negative equity. Blaming such shows and their presenters for the present uncertain state of the property market is akin to blaming TV chefs for the great bulge in obesity. Jamie Oliver, Hugh Fearnley-Whittingstall and the rest recommend healthy eating and responsible shopping - yet many people ignore their advice and binge recklessly. Likewise, I hope that I give sound advice rather than inveigling viewers into "get rich quick" schemes.

'In recent weeks I've been described as a "property porn queen" in the New Statesman, sniped at on the pages of The Guardian and lambasted by Panorama for excessively inflating house prices.

'I only wish that the show I present was as influential as some have been claiming. If it was, people might have taken notice of a campaign we have been running on Location, Location, Location, asking for a review of stamp duty, a tax that without doubt has contributed to the drop in the number of house sales.

'But it looks highly unlikely our pleas will be heeded. It is much easier to fire off flippant articles blaming property TV shows than properly examining why there has been a fall in transactions and - in some places, though not all - a fall in property prices. Some of the recent gloomy headlines make me suspect that all the journalists in the country have sold up and are doing everything in their power to cause a property house price crash so that they can buy at rock bottom.'

Let me add to the pile of 'flippant articles'.

I haven't sold my home in the hope of talking up a crash and buying back at rock bottom. To wrongly paraphrase Allsopp, I wish the website I run was that influential (although it does have 1.2m readers). I'm doubtful of my credentials to be able to move the property market.

Secondly, dictionary-swallowing Allsopp may not have been 'inveigling' viewers into get-rich-quick schemes, but some other presenters have. In fact, just today I was emailed an advert from Nethouseprices.com for the Platinum Partner Property Group. It tries to gain credibility with a BBC association:

'Sarah Walker, presenter of the BBC property programme 'To Buy or Not to Buy' has recently joined PPP as a franchise partner. She was so blown over by the concept and potential of PPP and in her words, "the integrity and passion of the founders and quality of everyone involved in the company", that she simply had to join.'

Steve Bolton, PPP's 'managing director', continues:

'Over the past 7 years, property has proved to be an exceptional investment for me – and continues to be so. Despite everything you might read in the newspapers or see on TV, the UK property market is providing me and my clients with excellent cashflow and return on investment.'

In a way, you have to admire such wild optimism. And, of course, you can get a piece of the action by paying a mere £297 plus VAT for a semimar. It all sounds vaguely familiar. (Our investigations into Inside Track).  

Back to the point - some genuine TV property experts give decent advice. Sarah Beeny is clearly talented at redeveloping property; Allsopp is a skilled property scout and negotiator. But beware of 'experts' bearing property predictions. In fact, beware of former models/estate agents bearing property predictions. Amanda Lamb, from a Place in the Sun, is a presenter rather than property expert. And she's certainly no economist. If I was given a fiver every time she said 'great investment', I'd have a get-rich scheme to rival Sarah Walker's. Lamb has been talking up the potential of European property for years, making some dubious claims about where prices will be in years to come. See our caution on her spurious hot European properties from 2006.

I think the point Allsopp should have made is that property programmes like hers - but not Lamb's - were merely a symptom of the property bubble rather than a major contributor.

- Andrew Oxlade, Editor, thisismoney

> Latest on house prices

P.S. It looks like Sarah Walker is also an expert in testimonials and endorsements. Here's another one...
http://www.fngonline.com/real_estate/endorsements.php

If you want to employ her, it's fairly easy to sign her up here...
http://www.womenspeakers.co.uk/speakerdetail2.asp?speakerid=133

Comments

[andy]

I don't think you can blame them entirely, after all they're just trying to earn a bob or two just like everyone else. However, I don't think they exactly helped the current dreadful situation.
Along with daft lending policies by the banks and sloppy financial control by the Government they undoubtedly contributed to all the hype that has left the less financially savy in a bit of a mess.

[HXP]

I enjoy watching Location Location Location it is a bit of a laugh. The presenters are so condescending as if they know the ' secret of property ' which the rest of us dummies can't figure out.

The programme never seems to touch on repayments, just how much do you want to spend and what are you looking for and off they go to play at housebuying.

It's just entertainment, don't take it too seriously they don't know much more than the rest of us they just get paid more for talking about it.

Entertaining enough and be interesting how popular they are in a falling market - presumably they know some more ' secrets ' of how to buy and sell in a hostile market.

Please do tell !

HXP

[AJ]

I totally blame these progammes, gullible investors, think its a licence to print money, buying and renovating property, now game over, so it should be for Kirsty and gang.

[Andrew, Nottinghamshire]

As much as the location programmes are as entertaining as window shopping and should be taken as seriously for practical people buying property , Ms. Allsopp and her sidekick Mr Spencer should not have been allowed back on our screeens following 'their' portrayol of the best and worst places to buy property in the UK. They gave already inflated areas a gentle rub on the back whilst depleted areas got a proverbial kick in the teeth.

[some perspective please!]

Kirsty misses the point. Altering stamp duty to get the property market moving at current price levels is not the answer. Asset prices are inflated well above the long term norm and these property programmes have to take some responsibility for talking them up to the gullable masses. The media is no more talking up the crash than it talked up the boom over the last few years. Surely these so called property experts have a duty to the average viewer to show a more balanced view of the market and focus on real value. I cant remember any of them warning about the over leveraged market, unsustainable asset inflation, risk of payment shock from interest rates etc etc. C4 have recently been found guilty of protraying a one sided argument on the issue of global warming yet these propoerty programmes have been doing exactly that for years now. Any programme telling the british public that property is a good investment at the moment is irresponsible. The TV regulators should have stepped in some time ago.

[Brian]

The Banks and Building Socities were lending far too much before the credit crunch, and the weight of available money sent prices sky high. Kirstie was pleased to 'go with the flow' and didn't sound any warning bells.

[Anon]

Anyone with a brain can see it is banks lending money 'that does not currently exist' out, Kirsty to blame for the 125% mortgage. I don't think so!

[Phil G]

Had the lenders kept the rules that were inforce when I first took out a mortgage there would not be the problems that are so common today.
10% deposit.
2 1/2 times earnings (no overtime/bonus considered)
Spouses income not considered. I reckon house prices would not be at the present levels had this still been the case. But I'm afraid greed took over all round.

[THE GENERAL]

I have been a property dealer/investor for 45 years. These
programs are DANGEROUS because they all make it seem so easy. Believe me its not.

They rarely mention problems and delays with obtaining
planning consent, it can take years, especially in London.

When do you ever see a Building Inspector demand that work be redone, at a cost of thousands of pounds, because he changes his mind and decides that he wants to inspect something that has been covered with say concrete or tiles.

Have you ever seen a sale fall through because of a negative survey? Surveys are often subjective not empirical.

I do not believe the building costs that are quoted, nor
the ease with which contractors are dealt with. They seem to gloss over things like builders walking off
jobs, not turning up and making dimetional or other
mistakes.

The profits are made from property price inflation and luck and have very little to do with clever developing or any knowledge of the building and property industry.

The only exception is Grand Designs there things do go wrong. But then the the presenter is a property professional rather than a Bimbo peddling property porn.

[Khan]

"flippant articles"... How hysterically patronizing is that?

Anyone who makes a point about the housing market not being the pot of gold at the end of the rainbow is described thus.

Kirsty et al are not responsible for the almost criminal neglect that banks, building societies, FSA etc have taken. But they have not helped with their blase, oh £500K for a 2 bed flat attitude.

Anyone ever watched the Money Programme episode about mortgage fraud? Now this might explain why we are where we are.

When will you be eating your hat Kirsty? :)

Khan

[david B]

If I advise on any other type of investment I require qualifications and approval. Why are people like Kirsty allowed to advise on probably the largest investment anyone makes with no real qualification? Why no health warning on the property porn programmes i.e. investments go up as well as down. I have no qualification to advise on financial decisions.

[Robert Twizell]

I distinctly remember Ms. Allsopp, on at least one occasion and almost certainly several more, encouraging some hapless would be home owner to immediately offer the asking price on a property... because otherwise they would lose it.

This is the soft end of the 'property mania culture' perhaps, not the 'hard end' of the Inside Tracker's and scam artists. But each ends of this spectrum fed off each other.

People are suffering because of this materialistic and self-serving nonsense. The banks provided the fuel. People like Ms. Allsop kept flicking matches into the flames.

This will not be forgotten, not even long after that hat is finally gulped down, no doubt aided by some helpful glasses of Puligny-Montrachet.

[Mario]

I'm afraid these programmes DO stoke up the property bubble. People watch these programmes, they learn how to negotiate prices, present a home for sale (hiding faults) and more importantly take on "PROJECTS" which see them tackle developments that are only suitable for professionals.

My sister took on a "PROJECT" three years ago. It has drained her mentally as well as financially. She now wishes that she hadn't undertook such a herculian task.

Channel 4 are worst for pumping out this drivel...location location location, relocation relocation relocation, Grand Designs, a place in the sun. Channel 4 is basically an estate agent.

[Jo]

I’ve just reacquainted myself with the word inveigle; the words we use are very revealing. I cannot think of a better word to describe Kirsty’s approach to getting the weekly couple to buy a property.

Of course Kirsty isn’t responsible for the property boom, like you say, she was more a symptom.

However, she cannot be surprised that she is now vilified for having a TV program where she says year in year out “now is a good time to buy a property”.

But she is surprised, and she even feels the need to talk up the property market – “in some places, though not all - a fall in property prices”.

She goes on to conclude that other journalists are able to do what she couldn’t – change a market.

I can only conclude that she isn’t very bright. Kirsty and Phil will be figures of fun/hate for years to come – certainly until they hold their hands up and admit mistakes. We certainly could do without programs that give the same financial advice whatever the environment.

[pedro b]

People are responsible for their own actions, if they have not done their research on a project or house then that is their fault!! This applies to mortgages too, eyes bigger than their bellies!!!
These programmes have absolutely nothing to do with property prices falling you numptys!!!

[CP]

You buy a property, do it up for 3 months then sell at a £20k profit. 90% of which came from the spiralling increase in property prices, little to do with the improvements. Why didn't they make it clear that these 'Projects' were just leveraged short term investments. Part of the problem? or a symptom? , a bit of both I expect. Perhaps if the government permitted enough decent houses to be built the boom would not have been so bad, but they want us all to live in energy efficient cells at 200 units per hectare on brownfield land.

[Max]

We should blame our TV companies for bubble building, not individual presenters. They have certainly frothed things up and bear a collective responsibility. They'd say they were merely reflecting current interests, of course, but they have done more than anything to convert our interest in DIY to a mania for making cash as amateur developers and investors. The MDF makeover miracle has given way to "Buy-to-Let Portfolia" and unbridled "Equity Release". Fortunately, the BBC has done their utmost to ensure that house prices come crashing round our ears having helped us into hefty mortgages, costly developments, multiple ownerships with a villa in the sun an escape to somewhere else and ridiculous "value adding" projects! The heady combination of consumer gullibility and good old fashioned public service broadcasting.

[Mart]

If Kirstie Allsopp thinks that 3% stamp duty is the reason the housing market has seized up then she really doesn't know much about the housing market.

If 3% were the difference between being able to sell and not selling, then a vendor could cut 3% themselves and hey presto, the housing market starts moving again.

In fact house prices have fallen by at least double that since she started this silly campaign, and the market still ain't moving.

In fact the housing market will of course start moving again... when house prices have crashed (something Kirstie previously assured us will not happen).

Estate agents can't predict the future of the market because they aren't economists. Even many economists naively didn't see this coming.

[Tamara]

Blame, blame, blame. I work in the business and everyone wants to blame someone else. Noone forces anyone to buy a property. People hear what they want to hear and an awful lot of greed has meant some have dived in where they probably knew, if they'd checked their finances before doing so, it was a high-risk decision to buy. Everyone knows bubbles burst and constant economic growth can't last.
TV presenters report on the market they don't dictate it. Mortgage lenders even, aren't to blame, again it is the responsibility of every housebuyer to make their own judgment on what the market will do and whether the investment they are making and the money they are borrowing is really a good idea backed by their own sound finances. Yes banks shouldn't have lent to some, but those borrowers should never had sought to borrow.
My advise, when buying always assume worst case scenario and not best case and don't believe what anyone tells you about the market. Do your own research and make up your own mind.

[Tracy]

I completely agree with Jo & Mart; what idiot would go rely purely on the advice of a tv presenter for, as someone rightly said, potentially the biggest purchase of their lives? If anyone did, then they were believing what they wanted to believe out of wanting to make a packet - fair enough, but don't go blaming anyone else if it doesn't work out.
If people would just take responsibility for their actions and move on they'd be much happier, skint or not.

[Alex Farr]

You can't put the blame of increased property prices on the shoulders of a single tv presenter and/or specific programmes, if you could then surly by the same merit you could attribute the recent decline in prices to the horrific mess that Lewiellyn Bowen et al made of peoples sitting rooms nation wide preventing would be buyers from purchasing due to the amass of purple squares painted on the walls and the stench of MDF.

[valree]

property in uk will always have a good price. just ride it out. My friends in other countries are waiting for cheap props but wont get them because there are not enough properties for sale. Ride the storm, can you really feel one. Its non stop sun to me. Amanda and Kirstys shows are great to me.

[cc2100]

I agree that KA and PS are symptoms rather than the cause, but they are responsible for leading people into a false sense of security and exuding confidence when they should have been advising caution. The trouble with all booms that go on too long, like this one, is that the fall is then much more severe. I have indeed seen it before, but the difference this time is that house prices reached a much higher multiple of average earnings because the banks carried on lending money to an insane level. Now we are all suffering. Woe is me!

[Anon]

Sorry, Mart, you haven't a clue.
How can you assume the worst case? There isn't one defined - it is an unlimited situation. Haven't you noticed the current situation, predicted by virtually no public figure?
People who talk about nobody being to blame are usually politicians who talk about systemic failure - that no one specifically has any personal responsibility - what sort of attitude is that?
After all the research in the world, which involves reading about and listening to experts' opinions, all you can do is take into account the views from those supposedly more knowledgeable than your own. It sounds like those "holy joes" who never do anything wrong - never speed (even through changing speed zones), never drink over the limit, are never overdrawn - ever.
If everybody knew the things you claim, why didn't the current gov't tell us all these things which were obvious to you? McBroon never mentioned anything about bubbles, neither did the BoE, the FSA, the Treasury, Alistair Darling, etc. If everyone realized the obvious, then the bubbles in the markets would never have occurred and Oor Gordy would never had the growth figures over the last decade to boast about.
Similarly, Mart would not have received the overall salary package he did get through being so smart.

[Cam]

Ooooh- dont get tetchy and defensive now Ms Allsop- just go and serve yourself a nice slice of humble pie to go with your hat- LOL

[Sarah Rose]

Property programmes and more importantly the rise of the internet played a BIG part in the increase in property prices. Property/holiday homes programmes are STILL being shown on british morning tv. Programme makers have not caught up with the international mayhem.
I own a home owner and welcome the house price crash.

[jimmy mcgillivray]

kirsty and phil are not to blame !!!. the banks and so called experts they employ are to blame.I bought only 50 per cent of my house (housing asc) rent the other 50 per cent.. i got offered a few 110 per cent mortgages but people dont think !! you have to live as well. As for your so called experts such as our mortgage advisors (dont make me laugh)..only feeling i got from most of them was.not what was best for you and your family but what was best for there commission..so carry on kirsty and phil your only trying to help nobody forcing them to buy a house.