"Halifax’s latest figures indicate that the nationwide housing market is in a precarious position, as the ongoing squeeze on mortgage finance takes its toll. But national house prices certainly won’t drop like a stone throughout the year. Underlying demand from the thousands of would-be buyers, combined with a severe shortage of properties for sale, should support house prices. However, until first-time buyers are given the financial support they need from lenders to get onto the property ladder, activity – the true barometer of a healthy market – won’t rocket up. 

"In London, the story is very different. We’ve seen some of our busiest months since 2007 this year, and are in the middle of another surge of activity following the long weekends at the end of last month. House prices have already risen 5% this year, and we anticipate further rises through the year as competition for good quality stock continues to heat up. In some parts of London, more than 20 buyers registering for every property placed on the market. Wealthy cash buyers and those with a substantial deposit, unaffected by the current mortgage famine, see the capital’s bricks and mortar as a sound investment. With the City showing signs of revival, and London set to retain its appeal to international buyers – especially after the spectacular global PR it received from the Royal wedding, its housing market should go from strength to strength in the long-term."