From This is Money:
The study by accountants PricewaterhouseCoopers says recent predictions may have heralded a ‘false dawn’, with prices set to fall further next year followed by a flat market in 2011.
The report said: ‘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.’
The research dampens hopes that the housing market’s recent green shoots are the beginning of a longer recovery.
Property prices in 2015 in real terms – after adjusting for inflation – could still be below average 2008 levels, it says, with a 30% chance this might still be the case by 2020. It notes that in cash terms, prices may appear to have recovered.
‘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…