House prices 'may rise 5% next year'

Posted: 20 Nov 2009 10:25:31 GMT

Residential property prices are expected to increase by as much as five per cent in 2010, according to a commercial director.

Francis Ghiloni of realpricecomparison.com commented that the housing market has received a "boost" from the additional credit being made available to first-time buyers.

He speculated that while it is "unlikely" that house prices will return to the levels of 18 months ago, there is a strong possibility for a "modest five per cent rise in prices next year".

Gross mortgage lending increased by five per cent last month, according to figures published by the Council of Mortgage Lenders (CML) this week (November 19th).

However, while gross mortgage lending totalled £13.5 billion in October 2009, this figure is still 27 per cent lower than during the same month of 2008.

Last month, the Land Registry also recorded an increase in the average house price in England and Wales. It noted that in September, prices rose by 0.9 per cent to an average of £158,377.

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