Seaside towns beat the credit crunch as prices continue to rise.

Seaside towns are defying the credit crunch with stable property prices, according to two new surveys.

The housing market should bottom out in the coming 12 months, and by the end of the year prices could start to rise again, according to new research.

Affordability in UK housing has improved dramatically over the past year, meaning the property market could recover sooner than most economists expect.

The finding, from Lombard Street Research (LSR), contrasts markedly with the consensus City view, which is that house prices will fall by another 10 per cent – 15 per cent this year, taking their total fall during the current crash to over 30 per cent.