House prices in England will fall this year and will not start recovering until 2011, according to the National Housing Federation (NHF).

The federation predicts that prices will fall 12.2% this year, 4.6% in 2010 and then stabilise in 2011 with a 1.1% rise. The NHF have also said that by 2014 house prices will be 20% higher than they are currently.

"Our research shows that, while house prices are falling in the short term, they will inevitably increase in the long term because of a fundamental under-supply of housing," said NHF chief executive David Orr.