House prices 'to rise by 17 per cent'

House prices will increase by 17 per cent by the end of 2009, according to economists at property agent Assetz.

The prediction is at odds with the recent gloom in the property market, which has seen prices tumble as the recession has taken hold of the UK.

Mortgage availability has been tight and many people have become "accidental landlords" as they hold on to older properties, rather than sell up while prices are falling.

However, this trend could soon change, if the prediction from Assetz is correct.

Figures from the firm show that the average cost of a three-bedroom semi was £185,276 in May, up by £1,987 from the previous month's average.

Stuart Law, Assetz chief executive, said: "All indicators now suggest that we have passed the bottom of the house price curve.

"All the major indices, analysed in our own report, and the recent Royal Institute of Chartered Surveyors survey are indicating an end to falling prices and an increase in activity."

There have been other positive reports for the property market, with Nationwide revealing that prices rose by 0.9 per cent in June.

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