UK house prices flat in March On a regional level, London recorded the strongest annual growth, with a 4.6pc increase pushing average prices to a new high of £306,919 - beating their 2007 peak. Wales was the second-best performing area of the UK, with prices up by 2.5pc year-on-year to typically reach £132,971, while Scotland was the worst-performing area of the UK in the Nationwide study, with house prices down by 4.9pc to reach £128,594 on average. "[However], the outlook for the housing market is unusually uncertain at present, in part because the prospects for the wider economy are unclear, but also as the impact of a number of policy initiatives is hard to gauge," he said. Jonathan Samuels, chief executive of Dragonfly Property Finance, said that while there was no change in prices in March, confidence in the market was "anything other than flat." "With the Funding for Lending Scheme appearing to have had an impact, and Help to Buy on the horizon, there is a degree of expectation in the market," he said. However, he said there was a worry that sellers were becoming overly confident and overestimating the value of their home There is confidence and there is overconfidence. In many areas of the country we are tipping into the latter," he said. The UK economy is still extremely weak, inflation cripplingly high and the latest jobs numbers, let's not forget, saw an increase in the number of unemployed. Add increased uncertainty in the Eurozone into the mix and the conclusion is that the perception surrounding the property market is disconnecting from the reality.