The UK real estate market has made a positive start and is looking like its on its way to recovery in 2010. According to the Rightmove House Price Index, we are just mid-way through January and we have already seen an increase of 1.2%. They also report that in 2009 prices rose by 4% on the previous year. So does this mean that the UK housing market is starting to look bullish again? Perhaps it is a little premature to make any conclusive predictions, however Rightmove suggests house prices in 2010 will remain static.

Interestingly, we can note that as a consequence of the resurgance of the housing market, Sterling has been on a four month high against the Euro suggesting that the momentum is certainly picking up in the economy. This will have huge trade benefits for the UK and should help to kick start activity across the EU borders. Perhaps, even more importantly it stands as a signal that we are slowly climbing back up the hill.

However, if you think the way business is conducted in the UK will stay the same, think again. According to the latest report by the Ernst and Young Item Club, organisations operating out of the UK will have to target customers further afield if they are to remain profitable. The conclusion was drawn based on the fact that there is likely to be a re-evaluation of the consumer-debt culture that has dominated the British landscape over the last decade. It is likely that people in the UK over the next few years will have less to spend as they are squeezed from both sides with rising prices and less credit.