Prospective buyers believe that house prices are set to rise this year, according to a new study.

Prospective buyers believe that house prices are set to rise this year, according to a new study.

The Homebuyer Show's research found that 80 per cent of buyers expected house prices to rise in 2006, while 15 per cent predicted a fall.

A total of 25 per cent of buyers predicted property would rise and 50 per cent thought prices were set to fall at the same time last year.

Nick Clark, managing director of the Homebuyer Show, believes the findings are part of a general recovery of housing market confidence.

Although he explained that the UK housing market had struggled throughout 2005, he believed that there should be optimism about the market in 2006.

"The market has begun to show signs of positive growth and both buyers and sellers are returning to the marketplace," he said.

He added: "Speculation of a reduction in interest rates should see a further boost in activity which should cause house price inflation over the whole of the UK."

Some buyers though were concerned about the effect rising prices would have on affordability. The Homebuyer Show found that 35 per cent of respondents were concerned about the prospect of price rises in this year.