House prices are set to rise by an average of 5.5% this year and will soar by as much as 7% in 2017, according to Rabobank economists.

If such strong growth materialises, it will be the biggest rise in house prices since 2002, the bank’s economists said.

Rising spending power, greater economic confidence and an increase in employment levels are helping boost the housing market because fewer home owners are now in negative equity, Pieter van Dalen told the Financieele Dagblad.

Low interest rates are helping drive up demand for property as well, he said.