House price recovery 'years away'

House prices will not return to the levels seen in 2007 for at least four more years, one new report has suggested.

People looking for property for sale in London have already deserted the market, with the latest report from the Royal Institution of Chartered Surveyors finding that home sales are at their lowest level in 30 years.

And now for anyone who has been wondering when they can rekindle hopes of getting on the housing ladder, a new industry poll has found that few professionals see a recovery in the short-term.

Some 60 per cent of Society of Business Economists (SBE) members surveyed for ITV1's Tonight programme said house prices will stay depressed for four more years, with the market widely predicting a price correction of up to 20 per cent.

"It doesn't look like we're going to see a fall - which is what we're in the middle of - and a quick bounce back," commented SBE chairman Bronwyn Curtis. "It does look as though it's going to go on, and we'll have slow growth for some time."

Recent figures from Halifax showed the average price of a house fell again in May - down for the eighth consecutive month.

Published 16th June, 2008

© 2008 Estates IT Limited

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