The strong housing recovery to date will leave average house price growth in the region of 3-5% in 2009. We believe that house prices will fall temporarily in 2010 with the General Election refocusing attention on the negative aspects of the UK economy. The housing recovery from 2012 is likely to be strong and led by London. For housebuilders, developers and investors the medium term outlook, despite relative weakness in 2010-2011, is positive with almost all risks on the upside.