Surveyors have predicted that house prices will end "slightly higher" than last year, however the market will still face challenges in 2010.

The Royal Institute of Chartered Surveyors (RICS) report said rising unemployment and increases in mortgage rates will limit the recovery in house prices.

It said the outlook for over the next year remained "clouded".


Senior Economist at RICS, Brigid O'Leary, said: "There has been a clear change in the housing market over the past few months. However, the outlook for 2010 is fairly uncertain, and there is a real risk that prices may slip back again."

RICS predicted in December that UK house prices would drop between 10 and 15% this year.

Ms O'Leary said: "The return of buyer demand and the limited availability of housing on the market could be enough to support prices, so it wouldn't be surprising to actually see prices increase further from here in the short term."

(CD/KMcA)