New CEBR predictions suggest a further 3% decline this year but 2% higher prices by the end of 2010
House prices will grow by 2% by the end of 2010, according to new predictions from the Centre for Economics and Business Research (CEBR).
The body forecast further falls of 3% before the end of 2009 before a return to modest growth in property prices through to 2013. Price increases of 3.6% are expected in 2011.
CEBR economist Benjamin Williamson said: “The key question now is the extent to which rising unemployment and weak wage growth will lead to a second wave of house price falls, or whether this has already been built into existing expectations.
“Our view is that the extent of house price falls already seen means further significant falls are unlikely.”
The predictions come after the Halifax revised its forecast to show falls of 7% for the year, down from its previous expectation of a 15% drop. Last week, surveyors' body the RICS said it expected house prices end 2009 higher than they were at the start of the year.