Rise in house prices 'to increase activity in housing market'

Posted: 04 Jan 2010 11:47:48 GMT

House prices will continue to rise in 2010, which will lead to increased activity in the housing market, one expert states.

Ray Boulger, senior technical manager at online mortgage broker John Charcoal, says that the rise in property prices will mean that people who wanted to move house in 2009 but could not because they did not have sufficient equity will be able to move this year.

However, he adds that the market is "still going to be constrained by the lack of mortgage finance".

Mr Boulger predicts that interest rates will remain low in the coming year, which will be an additional positive aspect for the housing market.

Increased competition among mortgage lenders will be a driving force behind increased activity, he states.

Recent figures from the Land Registry revealed that the average UK house price increased by 0.9 per cent in November.

The average home now costs £161,554.

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