RICS: BBA November mortgage approval figures

Commenting on the BBA mortgage approval figures RICS Senior Economist Oliver Gilmartin, said: "Today's numbers add further weight to our view that house prices will continue to move higher during early 2010. Lending from mainstream banks has returned to levels last seen two years ago, although remains around 30% below the levels pre dating the credit crunch . The rise in demand continues to outstrip supply, although recent indications are that potential vendors that became "reluctant landlords" at the start of the downturn, may be taking this improved pricing environment to place properties for sale.

"There are growing concerns that current momentum in the market will see house prices move close to pre crises highs in 2010 stretching affordability further. However, RICS expect the market to take a reality check in the second half of 2010, as longer term borrowing costs start to rise pushing the costs of funding for fixed rate mortgages upwards. But, Despite some moderation in the second half of the year, house prices could well end the year marginally higher."