From The BBC:
House prices will fall by a further 3% this year before recovering slightly in 2010, a group of economists has said.The Centre for Economics and Business Research has forecast that after more falls in value this year, UK average prices would go up by 2% in 2010. The consultancy is the latest group to indicate its predictions for the housing market. It is more gloomy for homeowners than others, who have suggested prices might end 2009 higher than they started it. Further gainsThe CEBR said the value of the average UK home would continue to rise in the following two years, increasing by 3.6% in 2011.
The shortage of homes built during the recession would cause supply to be tight and so support an upturn in average prices, the report said. “The key question now is the extent to which rising unemployment and weak wage growth will lead to a second wave of house price falls, or whether this has already been built in to existing expectations,” said Benjamin Williamson, one of the report’s au…
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