Growing numbers of people expect house prices to rise during 2006, according to a new survey.

Growing numbers of people expect house prices to rise during 2006, according to a new survey.

Yorkshire Bank's housebuyers report shows that 55 per cent of residents out of 2,000 who participated in the survey expect house prices to rise during the coming year.

Residents in the West Midlands were most optimistic of growth, with 58 per cent expecting house prices to rise in 2006, whereas ten per cent of people in the east midlands predicted that house prices would drop, the most pessimistic forecast in the country.

Gary Lumby, Yorkshire Bank's head of retail, said: "Buyers are starting 2006 in a more positive mood than last year, when there seemed to be a lot more uncertainty regarding where the housing market was going."

Sellers were also likely to benefit from a stronger market in the coming months with more pressure on buyers to offer the asking price, according to the report.

It indicated, however, that higher council tax is preventing people from getting onto the property ladder, with 23 per cent of first-time buyers delaying a purchase until local councils announced charges.