AVERAGE house prices in Newport rose during May, according to new figures from the Land Registry’s House Price Index.

But one city estate agent said prices were still falling, while another commented that the market was “unpredictable”.

The Land Registry House Prices Index keeps track of the value of completed house sales.

In Newport house average house prices rose between April and May 2010 by 2.3 per cent to 122,805.

They were up 3.6 per cent on May 2009.

In Monmouthshire prices rose 1.4 per cent month-on-month to £175,258 - up 4.7 per cent prices in the same month the year before.

Caerphilly county borough’s average house prices rose by 0.9 per cent from April to £102,004 in May, a rise of 3.6 per cent on May 2009.

Blaenau Gwent prices fell for the second month in a row in May by 3.6 per cent to £76,306, and were down 6.8 per cent on the year before.

Meanwhile the average price of home sold in Torfaen rose by 0.8 per cent to £112,266. It was the area’s second consecutive monthly improvement.

Roberts and Co director Alan Darlow described the current market as “very, very weird” and unpredictable, with properties that they believe are priced cheaply not selling, and homes priced reasonably selling above their market value.

He added that the firm had more properties on its books than the same time last year, with 350 compared to "a couple of hundred" last year.

However, Nick Gurney of Dunbar Estate Agents of Newport said he believes prices are still falling, with homes valued over £200,000 simply not selling.

“I think a lot of it is down to the banks not lending fall stop,” he said, adding lenders are insisting on 20-30 per cent deposits that home buyers don’t have.