2006 house prices to rise 3%
A new report from the Nationwide has predicted that house prices in the UK will rise by around 3% next year.
Recent reports on the housing market appears to have borne out the view that prices would bottom out rather than crash and Nationwide's new report appears to concur with that view.
The building society said it was "cautiously optimistic" about the year ahead as it predicted the 3% rise in prices for 2006 after a "seemingly stable" 2.4% rise this year. Nationwide originally predicted 2%.
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Nationwide said affordability would be the biggest factor in holding the market back, with first-time buyers representing just 12% of the market in 2005 down from 30% in 1999.
The market is likely to be underpinned though by the demand for homes, low borrowing costs and a change in consumers' expectations.
