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Renewed confidence in property market shortlived

"The best locations and most desirable properties are seeing price stabilisation at the moment, whereas less desirable areas and homes are still seeing big annual price falls," he said.

"Unfortunately, I fear that this renewed confidence and the increased buyer interest that estate agents are reporting will not last beyond the summer.

"Mortgage rationing is set to continue, as the banks struggle to recover from the credit crunch. This is causing a clear disconnect between property viewings and buying figures.

"Also, unemployment figures are getting worse daily and the wider recession continues apace. Massive national and personal debt problems will see much more house price pain when interest rates start their inevitable increases next year."

However, Lee Bramzell, Chief Executive of portal PropertyIndex.com, said: "News that the three-month rate of change has turned positive for the first time since December 2007 is a sure sign of better things to come. However, transactions are still historically low, as we wait for the fundamental drivers of mortgage availability and consumer confidence to make a more assertive return."
And Stuart Law, Chief Executive of Assetz, was even more positive. He said: "Nationwide’s figures bring further evidence that the housing market is on an upward curve, with price rises expected to continue throughout the rest of the year.

"Assetz predicts 5% growth by the end of 2009, as the shortage of homes grows more severe and the competition for existing properties increases."

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