Property prices: What to expect - news and predictions | This is Money

Property prices: What to expect - news and predictions | This is Money

House prices rose 0.5% in March, according to Nationwide, the third time in four months that the building society has reported price rises.

So is the slide seen throughout the end of last year over?

Certain markets are reporting a light spring bounce, with the Royal Institution of Chartered Surveyors suggesting London in particular has benefited from a 5% stamp duty beating rush for £1m-plus homes.

However, overall the picture is gloomy. Austerity cuts are due to arrive, tax rises are about to hit people's pockets, inflation is eating their wages and savings and petrol prices are sky high.

All those factors weigh heavily and with the property market all about confidence, rock bottom readings on consumer confidence indices do not bode well.

Nationwide says its consumer confidence index has fallen to 38, its lowest ever level, GfK/NOP says its measure has it stagnating near a two-year low.

No one has told people putting their home on the market though, it seems. Hopeful sellers are increasing asking prices, according to Rightmove. And that comes despite house prices having fallen by 11% since last summer, claims rival proeprty listing website Zoopla.

While those two reports appear contradictory, it's quite possible they are both right.

The continuing shortage of new homes coming for sale is allowing sellers to raise their initial expectations, but many are then later being forced to cut asking prices to sell, something not captured by the Rightmove data.