The housing market can expect a considerable increase over the next two years, as prices will rise by four per cent in both 2006 and 2007, according to the Royal Institution of Chartered Surveyors (Rics).

The housing market can expect a considerable increase over the next two years, as prices will rise by four per cent in both 2006 and 2007, according to the Royal Institution of Chartered Surveyors (Rics).

This is the grandest prediction so far regarding next year's property market, as most have hedged their bets at far lower levels, with Nationwide citing as low as zero to 0.3 per cent as a possibility.

Potential reasons for this sudden rise include buyers stepping back into the market after such a long wait and a rise in employment levels and earnings, Rics suggested.

The report also mentions the fact that this surge would continue the current trend, which has seen buyers return to the market due to the interest rate decrease in August.

Rics also highlights the question of mortgage approvals, which it anticipates will leap from 1.127 million in 2005 to 1.336 million in 2006.