Nationwide say house prices are 4.1% higher than last year. Hometrack report prices have fallen 3.6% in a year - and controversially, also say other indexes are flawed. These are the tip of the iceberg of  conflicting reports so no wonder people are confused, says a report from Hamptons International.

Their view is that the property market is very regionally driven and national headline pricing statements can be misleading, causing vendors to price their properties unrealistically high, which often results in a stalemate between vendors and purchasers.

Combined with the lack of pressure on many vendors to reduce their prices, this inevitably leads to more properties sticking on the market. Eventually something will have to give: as economic confidence falls and concern over affordability rises, market forces will cause price expectations to adjust.

The firm points out that the key to selling in this market is to set asking prices below those of competitors selling properties of a similar quality and size in your area. Buyers can cross-reference prices in any area very easily and quickly using the web.

Properties are selling

Figures from the Bank of England showed the number of house purchase approvals hit a 10-month high in May, compounding the now widely-held view that the market is stabilising rather than crashing.

And properties are indeed selling, although it should be noted that general feedback suggests that neither vendors nor purchasers appear to have any great urgency about proceeding unless the conditions are absolutely right.

This may well only change if/as and when interest rates move, one way or the other and with downward pressure on interest rates, low inflation and unemployment, and a buoyant City, the key drivers of the property sector will help to restore confidence to the market.

Exceptions to the rule

Although a significant and widely-publicised trend affecting the market is the continuing lack of first-time buyers who have been priced out of the market, there are always exceptions to the rule:

"Contrary to general press reports there are lots of first time buyers in Pimlico and this is freeing up the rest of the market to move on," said Adam Bishop, from Hamptons’ Pimlico branch.

Additionally, their London area sales directors have all commented that the main activity their branches are seeing recently is at the lower end, including many first time buyers, which is spurring the market from the bottom up. This trend may ripple outwards from the capital into the country regions, as is often the case.

Marc Goldberg, London sales director has noticed increased activity at the lower end of the market. "This is reflected by the average price of properties we are selling being 6% below the figure for last year. Higher activity in the lower sector will spur on the market from bottom up," he said.

London

18% more buyers registered across Hamptons London network than in last June. Increased activity was reported across the board:

• Offers were 30% higher than last June
• Net sales were 59% higher.
• The bottom end of the market saw the greatest activity as more first time buyers resurface.

Outside London

Once again regional variations are highlighted when comparing data for country branches above and below the M4:

• Southern Counties:
  Buyer activity in southern branches has surpassed last year’s levels. Although only 1% more buyers registered than last June, 15% more offers and 31% more sales were reported.
• Northern Counties:
  This month the Central Region experienced a marked downturn in buyer activity, but surprisingly and in spite of this, 10% more sales were completed than in last June. The Broadway branch reported record June sales, reflecting the strong demand in the Cotswolds.