House prices 'won't recover until 2020', says PwC

Its latest UK Economic Outlook report said there is a “near 50% chance” by 2020 prices will still be less than the heights recorded in 2007, when the average property was worth just under £200,000. However, the same home is currently worth £160,000, a fall of £40,000, equal to 20% of the property's value at the peak. 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. "This reflects the dampening impact of declining real income levels and continued t...