House prices to rise modestly in 2010

House prices will rise by one or two per cent over the coming year, according to the latest housing market forecast.

The Royal Institution of Chartered Surveyors today released its forecast for 2010, which predicts a rise in the number of sales from between 55,000 and 60,000 a month to 70,000.

However, the number of properties on surveyors’ books is reaching historical low points. RICS predict this will rise in the early part 2010, but demand will still outstrip supply.

House price rises will be held in check by a flat labour market, the ongoing caution of lenders and an uncertain economic climate, the forecast said.

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.’

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