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Housing-market hopes for 2010

London’s estate agents have done the digital equivalent of sucking their pencils and now say they know what will happen to house prices in 2010.

December 22, 2009 14:04

ByCharlie Jacoby, Charlie Jacoby

1 min read

London’s estate agents have done the digital equivalent of sucking their pencils and now say they know what will happen to house prices in 2010. A modest increase in properties coming up for sale is having little effect on the housing market, as prices continue to rise, says the Royal Institution for Chartered Surveyors. For the sixth consecutive month, more chartered surveyors are reporting an increase in new instructions than are reporting a fall. However, demand is still outstripping supply and most surveyors are again reporting rising prices.

London and the South East continue to be the most buoyant, with buyer inquiries remaining strong against subdued levels of instructions and as such, prices are rising most rapidly in those regions.

In 2010, the London property market will continue to bounce back strongly, despite the potential for further market turbulence in other parts of the UK, according to estate agent Marsh & Parsons.

A large increase in London homeowners putting up homes for sale in early 2010 — continuing the trend of recent months — will help satisfy the enormous buyer demand in the capital, which will boost transactions and lead to a more sustainable rate of house price growth. London house prices will rise between five and seven per cent in 2010.