House prices predicted to rise in 2010
House prices predicted to rise in 2010
Tuesday 22nd December 2009
House prices are predicted to rise by one to two per cent by the end of next year, compared to their current level, according to a latest forecast.The Royal Institution of Chartered Surveyors (Rics) claims the number of sales is also likely to rise to a monthly average of 70,000 from the 55,000 to 60,000 currently.
The Rics UK housing market forecast published today suggests supply should continue to increase in the early part of next year but will struggle to keep pace with demand providing a platform for further house price rises.
The group points to the fact the inventory of stocks on surveyor's books still remains close to historical lows.
Ongoing caution by lenders, the uncertain economic climate and a flat labour market are also likely to challenge house prices in 2010, meaning a rise of one to two per cent is as good as can be expected.
Commenting, Simon Rubinsohn, Rics chief economist said: "The imbalance between supply and demand will continue into the early part of the new year resulting in some further house price gains.
"However, the combination of more available property and the beginning of the exit strategy from the big stimulus programmes that have helped support the economy will gradually exert a greater influence.
"Transactions levels are likely to increase, fulfilling the Christmas wish list of many agents throughout the country but first time buyers are likely to continue to struggle to procure finance from lenders without the help of generous relatives."
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