Richard Sexton, director of e.surv chartered surveyors, comments:
"Prices haven't dropped off a cliff and remain relatively stable. With inflation consistently breaching the 5% barrier, property is becoming more affordable, which is encouraging news for buyers.
"It's the difficulty in securing a mortgage, not the cost of homes, that's keeping would-be buyers out in the cold.
"Despite headline figures showing the banks are lending more, they are still demanding big deposits, which are keeping the lower end of the market in gridlock.
"Prices for flats fell faster than any other property type - a sure indicator that the first time buyer market is sluggish.
"The market is groggy after taking a series of punches from the Eurozone, but none have been knockout blows, with the stability of property prices and mortgage lending showing lenders and buyers have remained largely unaffected by the single currency crisis.
"Low mortgage rates have helped stimulate demand further up the housing ladder by tempting more buyers to trade-up, which is compensating for the lack of activity at the bottom of the market.
"Rising mortgage volumes suggest more buyers who boast large deposits are being seduced by cheap mortgage finance and subdued property prices.
"The splurge of activity from these buyers is cushioning house prices and preventing them from falling further.
"How prices fare in 2012 depends on whether the UK can continue repelling the economic onslaught from the Eurozone.
"The Scottish government has flagged possible concerns regarding the local impact of the Westminster's recent veto of the latest European proposals.
"If cracks begin to appear in the defences and the contagion spreads, unemployment will rise, confidence will fall, and demand will fall with it.
"Most analysts are predicting flat growth, with increasing activity from buy-to-let investors and wealthier buyers offsetting the struggles of first-time buyers."
