Housebuilders' high hopes of 'significant recovery' in market

Applications increased 64 per cent in the last three months of 2009, up from 15,879 to 26,078.

In Yorkshire and the Humber applications rose 66 per cent from 807 to 1,343 according to The National House Building Council (NHBC).

The NHBC said the figures strongly support housebuilders who are predicting a recovery in 2010.

For the third consecutive month registrations have shown strong levels of recovery with 7,149 new homes registered with the NHBC for December 2009, up 68 per cent on last year.

Imtiaz Farookhi, chief executive of the NHBC, said: "Our housebuilding colleagues across the industry have shown cautious optimism as they reveal their predictions for 2010, and our stats support the prospect of significant recovery."

The UK residential property market seized up in 2008 as a result of the global slowdown, leaving housebuilders struggling as mortgage volumes and prices fell.

Panmure Gordon analyst Rachael Waring said talk of a rebound is good news as the housebuilding sector "tends to be one of the first to rise because it's a lead indicator of confidence".

Analysts have already raised ratings and price targets on the battered shares of housebuilders York-based Persimmon, Bovis, Barratt Developments and Taylor Wimpey.

Persimmon's chief executive Mike Farley said that house prices had stabilised faster than expected in 2009 and now the "fundamentals on buying houses are right".

Global real estate adviser Savills expects UK house prices to fall by 6.6 per cent in 2010, but to rise 2.7 per cent in 2011, 5.5 per cent in 2012, and eight per cent in 2013.

Other forecasters also have bearish views on house prices in 2010, but many see them rising in 2011 and beyond.

Lucian Cooke, a residential research director at Savills, said: "I don't think affordability is a massive problem in this market. I think it is how secure people feel in their jobs, how they feel about the economy generally, and whether they are able to get access to a mortgage."

Mortgage approvals in November 2009 rose to 60,518, more than double their record low of 27,162 in November 2008, but still less than pre-recession levels that averaged more than 90,000, according to Bank of England data.

Tim Wright, a partner at real estate agency King Sturge, said: "After what we've been through and the lack of bank funding, what we're now seeing is the re-emergence of housebuilders in the residential market."

Last week Taylor Wimpey said increasing numbers of private buyers are returning to the housing market.

Earlier this month Persimmon reported forward sales ahead 40 per cent, but also said it will maintain a cautious approach while economic uncertainty prevails.