The research conducted by Nationwide assesses the impact of housing prices near top primary schools. The data from Nationwide shows that living close to a primary school that achieves 10% better exam scores than its neighbouring primaries can add up to 4.6% on to the price of a home.

The price premium for good school catchment areas in London was 3%, which is the equivalent of an extra £8,670 on the average property value in the capital. In the suburbs of London, the price premium is 3.4% – an additional £8,438 on the cost of a home.

Members of the National Association of Head Teachers and the National Union of Teachers mounted a high-profile boycott because they said Sats are too crude a measure of pupil performance and are used to compile “unfair” league tables. They have called for the tests to be scrapped.

The education secretary, Michael Gove, admitted there are flaws with the tests but said Sats will go ahead next year.He said last month that it was “unfortunate parents and pupils in the schools that boycotted the tests will not benefit from the information that can be taken from test results”.

“I accept there are flaws in the current testing system so I am committed to reviewing national curriculum tests to ensure they are as rigorous as possible and in the best interests of schools, children, parents and the public.”

“There has been no real movement in the overall number of new mortgages available on the market [in the past month], but those that are available continue to be more competitive,” explained Michelle Slade of Moneyfacts.

“Many of the best deals are now available for a 25% deposit, having previously only been available for those with a 40% deposit.”

Although there has been little change this year in the proportion of mortgage deals requiring smaller deposits, the average interest rate being charged on them has drifted down.

While there hasn’t been much change over the year in terms of the proportion of mortgage deals allowing for smaller deposits, the average interest rate being charged on them has fallen somewhat.

The average two-year fixed rate deal now has an interest rate of 4.5% in comparison to 4.9% from January 2010.

Today, three-year fixed rates now cost an average of 5.2% instead of the 5.5% they were at the start of the year. Five-year deals have also fallen from 6.1% in January to 5.6% today.

According to Moneyfacts, a two-year fixed deal with just a 90% deposit comes with an interest charge of 6.2%, but a 25% deposit brings that down to 4.1% while a 40% deposit attracts an interest charge of just 4%.

Recent statistics released by the Council of Mortgage Lenders (CML) indicate that the average first-time buyer deposit now stands at £35,000 per home.

Aaron Strutt, of mortgage brokers Trinity Financial, said there were only four deals on general offer with just a 5% deposit.

He also found that offers from the larger financial institutions with 10% deposits were often very expensive.

“RBS have one of the worst rates available for first-time buyers with a 10% deposit – 6.89% fixed for five years,” he said.

“You would have to be really desperate to take this rate,” he adde

The property industry is outraged by the plans and has branded the idea as stealth tax that risks throwing the housing market into chaos.

The is already a mandatory energy assessment on all homes before they go on sale. The new green tax would apply to homes with F and G ratings. It is hoped that this will give the buyers an extra incentive to bring them up to grade E or better.

The move is a part of the government’s plan to to cut greenhouse emissions by 34% from their 1990 levels, by 2020.

But property experts believe any further expense heaped on buyers would damage the market. Steve Thomas of Townends estate agency calls the idea “madness”, pointing out that buyers would have to pay both the tax and “stump up for the upgrades”.

Nicholas Leeming of sales website Zoopla.co.uk says: “Some 65% of UK homes were built before 1965, and in London 27% before the first world war. This would clearly be unworkable.”

According to Nationwide’s house price index, the average cost of a UK home is now £170,000. Under the new plans, the stamp duty of £1700 would increase by £850. In order to secure a rebate of the £1700 around £10,000 to £15,000 would need to be spent on the home.

The two government departments considering the proposal – Energy and Climate Change, and Communities and Local Government – say the idea is only one of many measures under consideration.

According to PricewaterhouseCoopers, there is a 70 per cent chance that property value in 2015 is below that of 2007 in real timers. On top of that, there is a 50 per cent chance that property value in 2020 will still be below the value in 2007 in real terms.

John Hawksworth, head of macroeconomics at PwC, said: “The possibility of a renewed fall in house prices over the next few years cannot be ruled out as mortgage interest rates start to rise again.”

Halifax figures have shown that average house prices have fallen in each of the past three months. The gloom continued with the Royal Institution of Chartered Surveyors (RICS) revealing that sellers are now outnumbering home buyers. A shortage of sellers helped kick-start a the recovery of the market last year.

Howard Archer at IHS Global Insight said: “House prices are likely to be erratic over the coming months and will probably be only flat over the rest of 2010. It is hard at this stage to be optimistic about prices in 2011, as the fiscal squeeze will kick in, which will hit people’s pockets and lead to job losses in the public sector.”

In short, the current property market may not be more healthy than it is now for some time to come.

Paul Samter , The Council of Mortgage Lenders (CML ) economist said that although the estimated figures indicated  that there was a seasonal pick-up, the £13.1bn of lending was “still indicative of low levels of activity”.

“There are signs of house prices stabilising and more properties coming on to the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained,” he said.

Mr Samter went on to say that the regulatory burden will be increased on lenders because of the consultation paper on responsible lending and this will make it more difficult for borrowers to access credit. He also claimed that the “austere” budget along with job losses expected in the public sector also cast a doubt on housing market prospects.

The continuing low interest rates in the UK along with the increase in capital gains tax being less than expected has meant that many buy-to-let investors are not holding on to their properties instead of flooding the market and depressing overall prices.

Brian Murphy, head of lending at independent mortgage broker Mortgage Advice Bureau said: “With looming public sector cuts, taxation rises, a freeze on wage increases and inflationary pressures, we are likely to see lending tail off during the second half of 2010, with buyers likely to take a wait-and-see approach. There’s every chance that mortgage lending this year will be below the level of lending in 2009.”

Jonathan Samuels, CEO, property finance specialists, Drawbridge Finance, agreed: “Mortgage lending may be up slightly, primarily due to seasonal factors, but in the short-term both the mortgage and property markets remain delicately poised.

The FSA has pushed forward as proposal that requires all borrowers to verify their income to prevent over inflation of income. The news comes as no suprise after recent findings show that almost half of all approved mortgage applications have been self certified. Many believe that this was a major contributor to the recent credit crunch.

Although self-certified mortgages have almost disappeared from the market since the credit crunch, this proposal ensures that it stays gone.

Building Societies Association said there was a risk the proposals could create “mortgage prisoners”. Paul Broadhead, head of mortgage policy at the BSA, said: “To ensure borrowers are not adversely affected, it will be important that when the rules are implemented they provide clarity for lenders and are enforced consistently across the market. Interest-only mortgages are not inherently bad or high risk. However, it is important that borrowers with interest-only mortgages understand the importance of having a plan in place to repay their mortgage at the end of its term. The FSA needs to proceed with caution so as not to restrict the use of interest-only as a way of helping borrowers overcome repayment difficulties.”

The FSA found that:

• 46% of households either had no money left, or had a shortfall after mortgage payments and living costs were deducted from their income;
• Almost half of new mortgages between 2007 and the first quarter of 2010 were provided without a customer having to verify their income;
• The share of interest-only mortgages has been increasing. At the peak of the market, over 30% of all mortgages were interest-only;
• Many consumers with no repayment vehicle count on future house price rises or uncertain life events to repay their mortgage and some have no plan at all;
• Borrowers with a credit-impaired history are particularly vulnerable.