Landlords could see an increase in mortgage rates during 2010, according to the Royal Institution of Chartered Surveyors.

Commenting on the latest Bank of England mortgage approval figures, senior economist at the organisation Oliver Gilmartin said that increased rates could be creeping closer.

"The more buoyant housing market allied to the pick up in economic activity, now under way, is likely to bring forward the day when interest rate rises are back on the agenda,"he explained.

House prices could also continue to increase in 2010, he continued, as the demand for property still outweighs the supply and fewer homes are coming to market.

The Bank of England revealed yesterday (January 4th) that mortgage lending was gradually improving from building societies, although it remains at lower levels than in 2008.

Home loan approvals from such financial institutions reached £1,291 million in November of 2009. This is in comparison to £3,171 million during the same month in the previous year.

Written by Claire DoyleADNFCR-2002-ID-19540059-ADNFCR

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