6
Nov
'No crash' in house prices
There will be no imminent crash of the UK's housing market, analyst
firm PricewaterhouseCoopers (PwC) has said in its latest
report.
PwC said its research suggested that there was a one in three
chance that house prices would fall by 2010, arguing that the
housing market was currently overvalued by around ten per
cent.
However, this drop would be the result of a gradual cooling in the
market rather than due to a sharp fall or crash.
The company's latest UK Economic Outlook report also said that it
saw no reason why house prices should not continue to rise over the
coming decades, albeit at a much slower rate than in recent
years.
Economics and property market experts have been divided recently
over how they expect house prices to move in the near future.
Although some see the squeeze on consumer credit and rising
interest rates as factors pointing towards falling prices, others
have said that as long as employment levels are high, demand for
property will continue to push house prices up.
