James Thomas, Head of Residential Development and Investment at Jones Lang LaSalle, commented: “Whilst there is evidence to suggest the UK economy is in recovery mode there remain question marks about the depth and sustainability as well as how the public finances can be repaired, quite possibly under a new government.

“The recent pick up in house prices is based on fragile economic fundamentals such as a weak pound, which has driven overseas buyer demand, and a boost from the stock market recovery, both of which are unlikely to be as supportive during 2010.

“It is very probable the present recovery will stall next year with prices falling by seven per cent as the rate in the increase of new buyers to the market eases, while the low number of properties on the market bottoms out and starts to rise again.

“The overhang from 2010 is expected to make 2011 a difficult year but thereafter we can expect the potential for strong house price growth of six per cent per annum as an improving economy forces increased housing demand to come face to face with restricted supply.

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