A year of steady rise in house prices is confounding analysts and doom-mongers alike who predicted falls in house prices of over 10 per cent ahead of one of the worst economic slumps since the turmoil of the 1930's.
 
This time last year, prices on the property market had already been in decline since the onset of the credit crisis in late 2007. Now however, average asking prices have risen by more than 3 per cent in the last year to £221,463, according to property website Rightmove. The annual rise also takes into account the typical Christmas lull, with asking prices dropping by roughly £5,000 this month.
 
One explanation for the rise is due to both the historically low interest rates, and a shortage of supply on the market as many homeowners held of for value to return, therefore leading to increased competition among buyers for the "best" properties.
 
Miles Shipside, commercial director at Rightmove said: “More desirable areas continue to see low levels of property on the market, leading to upwards price pressure.”
 
While Rightmove predict a further rise in asking prices in the Spring, a period typically popular for buying and selling, they also suggest that the housing market will enter a more challenging period after the General Election.

Mr Shipside added: “Those contemplating selling should spend some of the festive break researching their local market before seeking professional opinion very soon after the New Year.
 
“Time may well be of the essence as the election is likely to be a party pooper. 2009 turned out to be a good time to trade up, and we forecast the positive mood will continue into 2010 until the post-election hangover kicks in.”

In other words, it could be a good time for those looking to fund retirement abroad, or those looking to downsize in order to add something extra to their retirement fund.