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Surveyors predict happy new year

The year 2000 has been a roller-coaster ride for many, with property prices at first surging ahead and then falling back, only to resume their upwards trend as the year comes to an end.

The November survey shows chartered surveyors again reporting price rises with 22% more surveyors reporting rises than those reporting falls, up from the 7% in the October survey.

According to RICS the next two years will see a quite different pricing pattern to the last 18 months, which has been quite volatile, with the market set to enter a sutained period of steady and settled growth. RICS predicts that prices will rise by an average of 6% per year for the next two years.

Much of this prediction seems to be based on the state of the broader economy and an apparent confidence in the ability of the government to manage the country's economic policy. With the underlying rate of inflation well on track to remain below the target level of 2.5% and the financial markets now predicting moderate growth in the economy, this all provides for a good enivironment for steady improvements in house prices.

RICS housing market spokesman, Ian Perry, said: "As we predicted in the early summer the housing market continues to stabilise. All the signs and predictions indicate that this will continue for some time to come."