The General Election result has lifted a cloud of uncertainty that had hung over the property market since early spring. One real estate index from Rightmove has pointed to a price rise in June 2015 of 3%, and although prices have fallen significantly in parts of prime central London (possibly due to changes to the stamp duty tax), elsewhere surveys have underscored growing confidence this trend for higher house prices is set to continue.

The right property at the right price can be a sound investment. However, against this backdrop of upward pressure on prices, the potential for misvaluation is plain. A valuation is a professional opinion and a reasonable spread of opinion is to be expected. If a valuer provides a negligent valuation and in relying on that the investor pays significantly over the odds, the buyer may be able to recover the over-payment from the negligent valuer. Such a claim will only succeed if the valuation process itself is found to be negligent and if the valuer's figure falls outside a reasonable margin of error.

Many investors accustomed to high prices in London and the Home Counties can be tempted by other metropolitan areas, for example, apparently cheaper properties in Liverpool or Manchester. Investors should be sceptical when faced by developers and salesmen offering 'discounted' property for sale, or promises of high rental yields, or rent guarantees. Similarly, buyers should be wary of properties being sold off plan, or with strings attached such as purchasing a (overpriced) furniture pack. Other sales gimmicks that should raise alarm bells are offers to buy-back at a guaranteed price later on, gifted deposits, or packaged offers. If the seller offers free legal work conditional on using a nominated solicitor, or offers to arrange funding of the purchase, investors should always ensure they instruct their own solicitor and valuer.