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House prices are predicted to rise amid a shortage of properties being put up for sale

House prices look set to rise by nearly 5 per cent in 2015, with property values pushed up by a shortage of homes on the market, an economic think tank said today.

The Centre for Economics and Business Research has tripled its house price forecast for the year from 1.5 per cent to 4.7 per cent.

The group said a "chronic lack of properties being put up for sale" had pushed prices up in recent months, causing it to revise its forecast upwards.

If its prediction is correct, the average UK home will be worth a record £261,000 at the end of the year.

Cebr said that while the London housing market had been a key driver of growth in 2014, it expects the capital to underperform the rest of the country this year, with prices rising by only 3.7 per cent.

via Zoopla