THE Government's decision to postpone the revaluation of properties for council tax bands has been warmly welcomed by estate agents.

James Gott, branch manager of Barnard Marcus in Uxbridge says the steep rise in the tax over the past few years has put some buyers off moving into high cost areas.

"If we'd seen a significant increase it would have had a major effect," said the agent after the backdown was confirmed on Tuesday.

"Council tax, schools and transport links are three of the most important factors when people decide where to live.

"If the revaluation had gone ahead in the short term, we could have seen people moving from the heart of a school catchment area to the furthest point out if it meant a significant saving in council tax. "

According to the latest estimate by the Halifax, there are now 33,000 properties in London that are worth over a million compared with just 2,600 in 1995.

The intended revaluation would have been the first since 1991. Householders in London and the South East, where house prices have gone through the roof in the past 14 years, would have been hardest hit.

Experts were forecasting that one in three homes would be placed in a higher band with families paying up to £270 more.

Now, with the immediate threat of a tax hike removed, James Gott advises people who want to sell up and move on not to be over concerned by conflicting reports about the market.

He says: "It seems there is a report coming out every week telling people that house prices are cooling' or flattening out.' No sooner have people heard this than another report will come out telling us that house prices have even risen slightly.' "On interest rates, nobody seems to agree whether the latest cut is a boost to first time buyers or not enough to bring them back into the market. In the same month, we've seen BBC News Online suggesting that confidence is low in the housing market and at the same time the Guardian reporting that house prices are up 5.4 per cent on the last quarter. Trying to get to the bottom of what is happening seems a fruitless task.

"The best way to find out what your house is worth," advises James Gott, "is to get an estate agent round for a valuation. There are lots of very local issues that come into determining the price - things like the council tax band, local schools and transport links. The timescale in which you want to move will also have a bearing, so will any improvements you've made to your home or even something as simple as whether you can park outside or not."