Recovery in the housing market is likely to slow down in 2010, it has been claimed.

According to the Association of Mortgage Intermediaries (AMI), gross lending will be between £150 billion and £160 billion over the coming year, with around 620,000 transactions likely to take place.

AMI director Robert Sinclair said that although the market is beginning to improve, the shortage of housing stock and low level of mortgage funding will continue to cause problems.

"If we are to see a real improvement in the mortgage market throughout 2010, the government needs to work harder to get lenders lending again. And the banks in particular need to ensure that the intermediary sector continues to be supported," he added.

A recent poll carried out by Unbiased.co.uk found that 18 per cent of people think property prices have now reached their lowest level and are now likely to rise throughout 2010.

Written by Nicole Maher