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House prices to rise by 6% in 2010

House prices to rise by 6% in 2010

British house prices are set to rise 6pc this year, the Centre for Economics and Business Research has said, revising its forecast of two to four percent growth made only a month ago.

The strength of the upturn has taken many economists by surprise and while the CEBR was one of the few forecasters to anticipate that 2009 would see house prices return to the growth it did not predict the rate of mortgage lending already seen this year.

Benjamin Williamson, one of the report’s authors, said “The fact the house prices have already risen since the bottom of the cycle has surprised more commentators.

“However, with the rate of mortgage lending more than doubling over this period of time, a shortage of new properties on the market, low interest rates and unemployment not rising nearly as fast as expected, it is easy to see how prices have moved so quickly.”

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