According to economists from the Center for Economics and Business Research (CEBR) house prices will show modest increases next year as the property market bottoms out about 25% below the 2007 peak. They say that the nosedive in prices means that the market has almost hit it's floor. The report goes on to say that prices will rise 2% next year and 3.5% in 2011.

The CEBR believes that a further 3-5% fall in prices could hit the market but the undersupply of housing and a predicted increase in mortgage lending in 2010 will prevent prices falling much further.