PwC warns of one-in-three chance of prices slipping

Posted: 03 Nov 2006 10:51:51 GMT

There is a one-in-three chance that property prices in the UK will fall between now and 2010, a report from accounting giant PricewaterhouseCoopers (PwC) has warned

There is a one-in-three chance that property prices in the UK will fall between now and 2010, a report from accounting giant PricewaterhouseCoopers (PwC) has warned.

The study modelled three different possible scenarios that could plausibly face the UK property market within the next three years.

The report also noted that there is a one in seven chance that property prices in the UK will have risen at just the rate of inflation by 2020.

"Despite the recent relative robustness of the UK housing market, potential home-buyers and investors should not underestimate its volatility in the medium term," said PwC economist John Raven.

"For example, our detailed analysis of historic data suggests that the chance of houses prices in 2010 being lower than they are today could be around one in three."

PwC calculates that the most likely eventuality will be house price rises of between 20 and 40 per cent by 2020, however.

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