UK house prices to rise by 10% in 2010, a survey claims
Nationwide Building Society made its prediction following nine months of consecutive growth delivering the fastest rate of increase since October 2007.
Early figures for 2010 showed month-on-month increases of around 1.2% pushing the annual rate up to 8.6%. The Land Registry confirmed that this was the first annual rise to be registered since May 2008.
"House prices strengthened their upward momentum at the start of 2010, increasing by a seasonally adjusted 1.2% month-on-month in January," said Martin Gahbauer, the Nationwide's chief economist.
"Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007," he added.
The three-month on three-month rate, regarded as a less volatile measure of house prices, saw prices rise by 2.1% in January, down slightly from 2.3% in December.
The Halifax Building Society, the other mortgage lender that produces regular analysis on the housing market, came forward with a more cautious view for 2010.
The Halifax survey stated that the rise over the past year had been fuelled by low interest rates but it predicted that the growth would be stemmed by an increasing supply of properties coming on to the market.
As a result of this, it forecasts small but modest growth for 2010.
A Halifax spokesman said: “A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices.”
