‘House prices to rise 16% in four years’

The CEBR believes that while property values will continue to fall for much of 2011 – ending the year down around 1.4% per cent – the market will start to stabilise.

Shortage of property will then start to push prices upwards.

CEBR chief executive Douglas McWilliams said: "We think the market is currently close to the bottom for the UK as a whole. The main factor driving house prices up is the shortage of available housing which has already pushed up rents.

"Housing completions fell to only 130,000 in 2010, well below the level required to keep pace with demographic change."

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