No housing recovery until 2013 - report

In a report published today, the CEBR claims around £50,000 will be wiped off the value of the average UK home by the end of 2009, pushing millions of homeowners into negative equity. CEBR says houses will lose 25% of their value from the peak seen in 2007 before bottoming out through 2010. It then expects a renewed boom in housing to commence, predicting price growth of 20% in both 2011 and 2012. By the time housing reaches its trough, CEBR believes the average UK home will cost £157,058, which could put as many as 2.5 million borrowers into negative equity. Nationwide have also predic...