Frank O'Donnell

The housing market witnessed steady increase in house prices for the sixth consecutive month in December. However, we are expected to see a flat rate in 2010 according to Halifax.

December’s 1% rise saw house prices higher on an annual basis for the first time since March 2008. Halifax reported that prices have risen by 9.4% since their low in April last year, helped by the effects of low interest rates on mortgages.

The Halifax reported that recent house price rises had been more moderate than they were in the spring and summer, in comparison with its rival house price provider Nationwide.

Commenting on the year ahead, Martin Ellis, Halifax’s housing economist, said: ‘The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale. Overall, our current view is that house prices will be flat during 2010.’

A recent survey was conducted by the housing charity reported a quarter of people said they or someone they know have had to stay living with their partner because they cannot afford to live on their own.