This is a question asked by many, and whilst there is no clear answer there are certainly some factors coming into play. 

1 – The growth in the global economy.  Many local economies, such as the UK, depend very much on global economic growth.  The negative factor coming into play here is the trade protectionism which could damage UK economic growth and with it impact UK property prices.

2 – Finance availability.  There is an increasing requirement for banks to improve their liquidity which in turn restricts what they have to lend.  The upshot is less finance for mortgages means it becomes even harder to buy a property.

3 – Rent capping for those on benefits.  Whilst many would agree with the UK approach here it should have a medium term impact as reduced market rents will reduce values for buy-to-let properties in some areas.

4 – Increased unemployment.  It is now becoming much more clear as to the effects of the austerity measures and the increased unemployment that will result.  The net effect of this will again be to put downward pressure on property prices.

Above are just some of the factors, but it starts to paint a picture, the balance seems  to suggest the there will be downward pressure on property prices in the medium term.