Property prices will rise 3.0% in 2010 according to the December BSA Property Tracker survey of over 2,000 people.

The December forecast compares to a 1.6% rise in prices in September and an 8.6% decrease forecast in December last year which demonstrates confidence is slowly returning to the property market.

However, The Building Societies’ Association warns that two big barriers to property purchase remain. With unemployment continuing to rise, the consequent lack of job security was identified as the biggest barrier to buying a property, with 60% of respondents identifying it as a barrier. Raising a deposit was also a problem for prospective buyers, with 56% identifying it as a barrier.

Paul Broadhead, head of mortgage policy at the BSA said: “The recent stabilisation of house prices over the latter part of the year is clearly reducing pessimism in the housing market. However