The recent rise in the UK house values is described as a “false dawn” and house prices are expected to fall again at the start of 2010 - forecasted by the Leading Economic Consultancy.

The recent rise in the UK housing market has been described as a “False Dawn” by a firm of leading Economic Consultants with house prices expected to fall again by the start of 2010.

Indications are that the current housing market stabilisation will not be sustainable and house values will again fall in 2010 - remaining stagnant for two years before a gradual recovery can be expected with figures not returning to their 2007 peak for another five years.

The findings suggested that the current increase in house prices is merely a reflection of the lack of supply within the market, together with the support of a few cash-rich buyers; while many Homeowners are still trapped under negative equity.

Expanding further, the rising unemployment rate is likely to limit the improvement within the market. As faced with job and financial insecurity, many potential buyers will be putting their dreams of property purchase on hold.  Those still wishing to buy are faced with a shortfall in mortgage lending - with figures in the second quarter of 2009 confirmed that most mortgage offers received by first time buyers were on average only 70% of the property purchase price.