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Mortgages: House prices unlikely to rise to previous levels until 2020

By Jonathan Dawes, Tue 12 Jul 2011 - Published in Mortgages

Potential home buyers looking for a mortgage have been told property prices are unlikely to recover and peak to previous levels until 2020.

This is according to research from PwC, which has revealed that there is around a 12 per cent chance that dwelling prices will have risen back to their 2007 highs by 2015.

Its UK Economic Outlook report highlighted that even by 2020 there is only a 50 per cent chance that the market will have recovered.

John Hawksworth, chief economist at PwC, said: "We expect average UK house prices to drift down further over the next year and then enjoy only a modest recovery over the next few years."

Recently, the Council of Mortgage Lenders (CML) revealed that during May the number of loans issued to people purchasing properties and remortgaging both increased.

Michael Coogan, director general at CML, added that stable conditions in this market area are expected to continue for the rest of 2011.