House prices will not reach their pre-crisis levels until 2020, according to new research from PricewaterhouseCoopers.
The accountancy firm said that house prices will still be 12 per cent below their 2007 highs by 2015 and that by 2020 there will only be a 53 per cent chance they will have risen from the 2007 levels by 1 per cent.
PwC chief economist John Hawksworth says: “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. This reflects the dampening impact of declining real income levels and continued tight credit conditions for first time buyers in particular.”
The Royal Institute of Chartered Surveyors recently announced that house prices fell in June as demand from buyers stagnated.