2009 saw 5.9 per cent house price rise

Its monthly index shows a 0.4 per cent rise for December across the UK, boosting the annual rise from 2.7 per cent in November to 5.9 per cent.

However the lender said the outlook for the housing market remains uncertain, with prices likely to remain static in 2010.

Martin Gahbauer, Nationwide’s chief economist, said: ‘This year’s recovery has to some extent been driven by transitory factors and there are reasons to believe that it will lose momentum over the coming year.

‘At the same time, there is no obvious catalyst on the near-term horizon that would trigger significant renewed falls in prices, such as a sharp spike in interest rates or a further pronounced tightening of credit conditions from present levels.

‘At this stage, therefore, it seems likely that 2010 will see no significant house price movements in either direction.’

Yesterday the Land Registry reported house prices rose 0.9 per cent across England and Wales during November. It says this leaves the annual house price change at -0.3 per cent.

The most up-to-date figures available show that during September 2009 the number of completed house sales in England and Wales rose by 30 per cent to 53,482 from 41,302 in September 2008.

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