6 Nov

'No crash' in house prices

'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.

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