According to a news article published in the Express today there are expectations of a house price surge in spring 2011.

But it all depends what is meant by “surge”.  The article does not give any predictions, its focus is more on the balance of opinion amongst surveyors that prices will increase this spring. 

One of the factors given for the spring increase is a shortage of quality housing available for sale.  Thus it only takes a small increase in demand, when combined with shortage of supply, for prices to increase.

The fact is however that houses prices tend to follow a seasonal pattern in that spring is traditionally a period where prices rise (relatively).  But in a declining market as we have seen recently a rise in prices this spring will correct the falls over the winter, the real question is will prices increase over the full year of 2011? 

A longer term sustainable increase in property prices may still be some time away as there are many factors at play here.  If you would like to read more about factors that influence property prices read our 2009 article on house price predictions.