The housing market is set to pick up in 2009, according to a building society chief.

That’s the surprising forecast by Kent Reliance chief executive Mike Lazenby.

The Chatham-based boss who has been dubbed "Maverick Mike" went against the flow of gloomy data and forecasts by predicting an upturn in house prices and transactions in the later part of the New Year.

"I am ever the optimist and believe we will see an increase in housing activity in 2009, and I also believe house prices will start to climb again," he said.

He is also convinced that the market is close to the bottom.

He said: "I cannot see a situation where it can get any worse."

But few appear to share his view.

The Royal Institution of Chartered Surveyors says that prices are likely to fall by a further 10 per cent in 2009, while John Varley, chief executive of Barclays Bank, believes the drop could be as steep as 15 per cent.

average house price

The average house price in England and Wales now stands at £161,883, a figure last seen in February 2006.

The Land Registry has reported that prices fell by 1.9 per cent in November, pushing the annual dip in house prices to 12.2 per cent and the 15th consecutive monthly fall.

And Hometrack, a provider of housing data, said house prices fell an average of 8.7 per cent this year, with the south east among the areas hardest hit.

successful year

Mr Lazenby can point to a successful year for the society which shrugged off the turmoil in financial markets to boost profits and assets.

In the year to September 30, the mutual saw assets rise by nearly 10 per cent to £2.34bn, and pre-tax profits up 121 per cent to £12.6m.

Mr Lazenby blames fundamental mistakes by the banks for the present financial crisis and is incensed that building societies will have to help bail out the banks under the financial services compensation scheme, something that will cost Kent Reliance up to £5.5m over the next three years.

"Had it not been for the very bad decisions by some big banks, who got it completely wrong, the UK economy would not be in such a bad shape," he said.