The National Housing Federation has released a report that says that UK house prices are set to rise 25% by 2013. The report sees prices falling 4.4% in 2008, then by another 2.1% in 2009, a slight recovery in 2010 and rising to over 9% in 2012 and 2013 respectively.

People living longer, delaying marriages and an increase of couples getting divorced have all contributed to the rise in demand for homes. Although there are concerns over how accurate the forecast can be, there is a worry that new homes that are being built will not meet the demand.

Nationwide Building Society has announced that UK house prices have had there largest monthly fall since 1991 and according to the report prices have fallen by 2.5% during May.

The lender also said that prices were now 4.4% lower than this time last year, which equates to a drop of nearly £8,000 that has taken the average house price down to £173,583.