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House prices predicted to rise by 5% in five years

Housing market sales were at their strongest in nearly six years in the run-up to Christmas, with surveyors predicting it will begin to "thrive once more". Prices are expected to rise by 5% by 2019, the Royal Institution of Chartered Surveyors said.

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Warning of 'unsustainable' housing market

The housing market could collapse again if new homes are not built, an industry chief has warned.

Peter Bolton King, Rics global residential director, said:

Growing availability of affordable mortgages has released some pent-up demand from a market that, in recent years, has seen many viable buyers unable to enter the market.

On the face of it, this seems like good news but unless we see a marked increase in the number of homes coming up for sale we could well be looking at price rises becoming unsustainable in some areas.

– Peter Bolton King, RICS

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