House price predictions

The Royal Institution of Chartered Surveyors (RICS) predicted that the recent trend in upward house price movement would continue to rise in the first half of 2010. Over the twelve months of 2009, house prices rose by an average of 6% (according to the latest Nationwide Building Society survey) across the country and RICS expects this trend to continue.

It is also felt that the slump in new house building due to the credit crunch and it's recessionary effect on the building industry, means that there is more pressure on demand which will invariably lead to an increase in overall house price levels. However, as new house building recovers in the market place (as is forecast as the economic conditions improve) and we emerge from the depression of recession, house prices increases could be dampened from rising too rapidly.

But, who can tell? 2009 was supposed to see house prices crashing and they haven't, so how much faith do we have in the predictions for house price growth? As has ever been the case, the price of a house is dependent on what someone is prepared to pay - that might be more or less in 2010 than today?

According to government statistics the price of the average UK home is now £198,450 - how do you think the value of your house compares to the average?