Homeowners shouldn’t expect their property values to hit the heights of 2007 until 2020, PricewaterhouseCoopers (PwC) has warned.
The firm has worked out that there is just a 12% chance that house prices will have returned to their 2007 level by 2015, while there is just over a 50% chance that they will do so by 2020.
“We expect average UK house prices to drift down further over the next year and then enjoy only a modest recovery over the next few years,” said John Hawksworth, chief economist at PwC.
“This reflects the dampening impact of declining real income levels and continued tight credit conditions for first time buyers in particular.
“Later in the decade, however, we do expect stronger house price growth as supply shortages reassert themselves and credit availability gradually returns to more normal levels. But it will be a long slow road to recovery.”
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