House prices will return to normal eventually
House prices across the UK are set to remain flat for the next
couple of years before picking up in the second half of the decade
and returning to normal by the mid 2020s.
According to the latest PricewaterhouseCoopers (PwC) report,
it will take a few years for prices to start picking up thanks to
lower inflation levels beginning in 2013.
This will mean that by 2017, the price of homes will have returned
to the same cash levels seen before the recession of 2007.
However, the issue with inflation will remain, and in order for the
price of homes to achieve relative parity, those looking to sell
will need to wait until as late as 2024.
John Hawksworth, chief economist at PwC, said: "House prices should
recover later in the decade as confidence is gradually restored,
credit conditions ease for first time buyers and underlying housing
supply shortages reassert themselves."