Supply should continue to increase in the early part of 2010 but will struggle to keep pace with demand providing a platform for further house price rises.

Significantly, the inventory of stocks on surveyors' books still remains close to historical lows however the narrowing in the gap between supply and demand will gradually begin to exert a greater influence on the market.

The ongoing caution of lenders, the uncertain economic climate and a flat labour market are all also likely to present challenges resulting in prices finishing the year only one or two percent higher than they started it.

However, with more property coming onto the market it is likely the number of completed sales will increase. RICS estimates that the average volume of transactions will rise from between 55,000 and 60,000 to 70,000 by the end of 2010

Source: RICS