The National Association of Estate Agents (NAEA) has outlined its predictions for the UK property market over the next 12 months, saying that the key factor underpinning such prediction is how much lending is made available.

It believes that house prices could remain flat, or, in some markets possibly drop slightly, for the first six months, before picking up again and remaining stable in the second half of the year.

Supply, it argues, will remain stable in the run up to the General Election, after which there are likely to be more houses available for sale, particularly if Home Information Packs are scrapped. It sees that the General Election will cause a lull in activity as people adopt a “wait and see”” approach.