Spring is one of the busiest times for the residential property market, and with the season almost upon us, we take stock of what is in store in the coming weeks.

House prices are on the rise again; however national estate agent Strutt & Parker warns that buyers and sellers should act carefully in order not to misinterpret the sense of renewed confidence. Positive movements are appearing in some areas of the market, but it is more complex than simply rising and falling prices. Only the most astute can take full advantage of the increased activity in a market which has experienced a vast downturn in recent years.

Most of the positive signs have been in the mid- to upper end of the market - the very top end of the housing market in particular has been impacted by the lack of bonuses in the City. There is a large number of people downsizing and taking equity out of property. This stimulates confidence for smaller, mid-range homes; however it has created a glut of larger properties where asking prices have been adjusted downwards to accommodate the increase in supply.

There is also a record number of people upsizing who are taking out loans that are less than 50% of the value of their new home. This suggests that buyers are more cautious about entering the market and the size of loan they take.

Michael Fiddes, Head of Agency at Strutt & Parker believes: "The renewed confidence has stimulated some sections of the market since the beginning of the year. Although early signs of a housing recovery are positive, much of this has come from vendors being more realistic with prices. People have come to terms with the economic instability of recent years and the British mentality of 'life goes on' can be seen in property market activity."

As the property market adjusts to the overall economic picture, there will be price movements in both directions and the layered nature of the market means that some areas will do better than others. Stronger than usual growth in London, the South and the South East ahead of the Olympics this summer has also given the market a boost."

Reports in various sections of the press have talked about the more upbeat mood across the sector. Although positivity is good for the market, it is also important to acknowledge that other factors, such as the upcoming stamp duty deadline, will influence market activity." added Fiddes.