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House prices could end the year higher than they started according to the RICS.  The surveyors organisation has dramatically reversed its previous forecast of a 10 per cent fall in prices this year in the light of growing data suggesting that prices across the country have been recovering some ground in the last few months.

RICS senior economist Brigid O'Leary explained the change in heart:  "There has been a clear change in the housing market over the past few months and, as a result, it is unlikely that we will now see the kind of house price falls widely predicted at the start of the year. Instead, the return of buyer demand and the limited availability of housing on the market could be enough to support prices so it wouldn't be surprising to actually see prices increase further from here in the short term. That would be consistent with more positive expectations that have been reported in recent RICS Housing Market Surveys". 
 
She went on, however, to warn that this did not mean an imminent return to a housing market boom.  "The outlook for 2010 is fairly uncertain and there is a real risk that prices may slip back again. Affordability is still stretched and mortgage finance, while improving, is fairly hard to come by. The positive news we have seen has been a recovery from record lows and there are still many uncertainties in the economy. In particular, we are concerned about the mortgage finance environment and the impact of further increases in unemployment on house prices."