Opinions over the direction of the UK property market have remained divided this month. While house price growth has picked up in April, the overall trend may be moving towards a gradual cooling of house prices.

Current economic conditions suggest that a house price crash remains unlikely, although many analysts claim that too rapid an increase in interests rates could destabilise the market.

The latest figures from Nationwide for April show that house prices are up 0.9% from the March figure of 0.5%. Annual house price inflation now stands at 10.2%, pushing the average house price in the UK to £180,314.

Commenting on the figures Fionnuala Earley, Nationwide’s Chief Economist, said: “the bank of England held off raising interest rates at the beginning of April, but the acceleration in house prices during the month makes a rise on the MPC’s 10th anniversary look like a certainty. The pace of house price growth almost doubled during April to 0.9%, up from 0.4% in March. This brings the annual rate of inflation back into double digits at 10.2% and the price of a typical house up to £180,314, which is £16,741 higher than at this time last year.

“While the monthly rise in prices is stronger than the [Bank of England] would have liked to see, it can take some comfort from the fact that the underlying trend is softening”, she continued.

The increase in inflation to an 11 year high of 3% has meant that, to many people, an increase in interest rates come May 10th is almost a certainty.

Hometrack director of research Richard Donnell said that any further rise interest rates over the coming months could slow the market down substantially. He said: "Interest rates and the prospect of further rises remain the greatest threat to short-term price growth."

According to the Royal Chartered Surveyors (RIC’s) April report, House prices rose for the eighteenth consecutive month in April. This rise was driven primarily by renewed momentum in London, the South East and East Anglia.

The pick up appears to be closely related to the planned introduction of HIPs rather than any decline in the state of household finances.

Surveyors report that increasing numbers of sellers are listing their properties early in order to avoid the upfront cost of assembling the pack.

Consequently, the stock of unsold property on surveyors’ books increased for the first time since last November.

New buyer enquiries declined for the fifth consecutive month and at a faster pace, indicating that recent interest rate hikes are weighing heavily on buyer affordability.

RICS spokesman Ian Perry said, “With prices buoyant and conditions still tight another rate rise later in the summer looks likely”.

“The fear of paying the upfront buying costs of HIPs has pushed more property onto the market. This will continue throughout May but conditions should tighten if HIPs go ahead on 1 June as sellers withdraw from the market.”

The National Association of Estate Agents (NAEA) has alleged that the introduction of the government's mandatory Home information pack (Hips) scheme in June will see a large rise in house prices. It bases this view on the notion that the need to pay to obtain the packs will deter speculative sellers from putting their homes on the market. The NAEA is opposed to Hips and has called for delays in its introduction.