From This is Money:
The National Housing Federation (NHF) study suggests prices will continue to fall then start to recover slowly in 2011.
It says the average price at the end of 2014 will be £227,800 – £38,000 higher than the forecast average of £189,800 for 2009 – a 20% increase on current levels and 3% above the 2007 peak.
Research by the NHF this time last year said prices would fall by 2.1% this year before beginning to rise in 2010, edging ahead by 1.3% and then rising by 5.2% in 2012 and 9% in each of the following two years.
In 2006 it said that prices would rise by 50% to an average of £286,500 by 2011. These predictions were made before the banking crisis hit in late summer.
David Orr, chief executive of the NHF, said: ‘Even though house prices are falling, and are set to remain sluggish in some areas for the foreseeable future, affordability is not improving for many low-to-middle income households.
Compounding the difficulties for those who wo…
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