Five per cent house price increase "looks possible"

A modest increase in property values can be expected over the next 12 months, but a return to house price booms remains "unlikely", according to realpricecomparison.com.

Francis Ghiloni, the property website's commercial director, said a five per cent increase over the coming year "looks possible".

The comments follow the prediction of investment advisor Assetz that property prices will continue to rise throughout 2010.

Mr Ghinoli added that the housing market is beginning to "boost" due to increased competition among mortgage lenders leading to buyers being able to access better deals.

"The mortgage market is reviving, but new rules on affordability and caution among lenders will act as a brake on any reckless lending for a long time to come," he added.

The Council of Mortgage Lenders (CML) yesterday reported that gross mortgage lending had increased by five per cent in October to £13.5 billion.

This figure is still down by 27 per cent from October last year and the CML estimates gross lending to total around £141 billion in 2009.

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