Recent Hometrack reports indicate a divide in the increase in house prices has taken place.  England and Wales saw price increases with London and the southeast accounting for about three fourths of the spike.  Almost 15% of all postcodes in England and Wales experienced house price increases.  Hometrack reported stronger than average price increases in areas with a shortage of supply and stronger demand.

House prices are indicative of consumer confidence and the short term prospects of success in any region.  Although many analysts see overall activity increasing with the outside temperature, the UK housing market needs to experience several months of strong leaps forward to recover to the more favorable years of pre-2007, or the years prior to the economic crisis.

Richard Donnell, Hometrack's director of research, commented on the current status of the ratio of supple compared with demand, saying: "The latest survey shows that a seasonal upturn in housing market activity kicked in over February with more sales agreed, a bounce in demand and an increase in the supply of home for sale.”

Donnell added: "The impetus for improved market conditions and higher prices has been driven by London and the home counties of southern England where there is the greatest mismatch between supply and demand."

Donnell continued: "This tallies with our survey which shows that low turnover has been a feature of the market for the last five years. While the market in southern England is the most buoyant, it is also the most expensive."