Over a decade to full recovery for housing market
August 11, 2009 by admin
Filed under News, News-Mortgages
It has been claimed that a full recovery for the property market in the UK could still be quite some way away, with some industry official claiming that it could be more than another decade before the property market makes a proper recovery.
Officials from PriceWaterhouseCoopers claim that it could be as late as 2020 before a full recovery is seen in the property market, adding that the various other reports that have claimed that recovery has already started have heralded a ‘false dawn’.
Officials from the firm have predicted that property prices will continue to fall next year, and in 2011 there will be a period of stagnation. The report caused disappointment for the many people that thought they were on the road to recovery already. The report claims that even in 2015 property prices could still be lower than they were in 2008.
The report stated: ‘Prices are projected to be broadly flat in 2011 and to recover only gradually after that, but there is a widening band of uncertainty around these longer term projections.’
An official from PwC said: ‘Although the estimated average UK house price overvaluation of around 25% in mid-2007 has now been largely eliminated, our analysis suggests that house prices could still have further to fall over the next year. The pace of recovery in house prices seems likely to be relatively modest until the middle of the next decade, although it could pick up again beyond that as supply shortages reassert themselves, credit conditions return to normal and negative memories of the current housing bust fade.’
He went on to state: ‘Despite some recent reports of rises, we are not out of the woods yet by any means.’
Tags: housing market, bust, market, memories, PricewaterhouseCoopers, firm, supply, property prices
