LONDON (Reuters) - British house prices will rise by one to two percent next year, with gains in the first few months of 2010 followed by stagnation and modest falls in the second half of the year, the Royal Institution of Chartered Surveyors said.

British house prices fell to a five-year low in early 2009, but have since rebounded by 10-15 percent from their low point, giving a 2.7 percent rise for the year to November, according to mortgage lender Nationwide's index.

RICS forecast last year that this index would fall by around 10 percent over the course of 2009.

For 2010, RICS said an initial upward effect on prices caused by a shortage of property relative to the number of registered buyers would fade.

"The combination of more available property and the beginning of the exit strategy from the big stimulus programmes that have helped support the economy will gradually exert a greater influence," said Simon Rubinsohn, RICS's chief economist.

The volume of property transactions would probably rise to about 70,000 a month by the end of the year, up from around 55,000-60,000, RICS forecast. Mortgage approvals would follow a similar pattern, RICS added.