Property prices 'to increase in 2010'

Posted: 11 Aug 2009 11:27:08 GMT

UK property prices are set to rise over the coming year as the market starts to recover, according to new figures.

Economists from the Centre for Economics and Business Research (CEBR) are forecasting that house prices could increase by two per cent from the end of this year to end of 2010.

It is expected that modest growth will continue through to 2013 as people feel more confident about buying and selling property.

According to the CEBR, the average house price will total £152,000 at the end of 2009, rising to £155,000 in 2010, then £161,000 in 2011 and £163,000 in 2012.

Benjamin Williamson, CEBR economist, added that the current unemployment in the UK economy is unlikely to lead to further long-term property value falls.

"Our view is that the extent of house price falls already seen means further significant falls are unlikely," explained the economist.

Last week, the National Housing Federation predicted that the average house price in England will increase by 20 per cent to total £227,800 by 2014.


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