The Communities and Local Government (CLG) released information showing that the average prices of UK homes have now risen back to above £200,000.
While November figures showed that the rate of increase in the value of UK property has started to slow down, prices are still 0.6% above the corresponding period in 2008. However, while house prices are beginning to consolidate and stabilize, there are signs of rising demand from buyers.
Bizarrely, many people think that UK house prices are likely to fall back this year due to increased availability and demand. The lack of competition for individual properties, which is thought to be the prime reason for the swift increase in home prices, should at least restrain the final sale price of many properties.
It is ironic that the UK property market has shown signs of recovery by the end of 2009, but could still suffer due to increased supply and demand in 2010.