House prices have fallen by around 17 per cent since their peak in 2007 and may not reach those levels again until 2020 according to new research - growth of 2 per cent a year.
A 2 per cent rise would represent a lower rate of increase relative to historical average real UK house prices growth of around 4 per cent per annum between 1984 and 2007 or around 3 per per annum between 1984 and 2010, according to PricewaterhouseCoopers.
Mark Smith, regional chairman at PricewaterhouseCoopers LLP in the Midlands, said: “There is significant uncertainty in the region’s housing market and much like the rest of the UK, it is expected to see only slow growth over the next decade. However, it is important to remember that slow growth is not the same as a decline and our analysis indicates that the market will keep moving in a positive direction. Alternatively, those with a higher risk appetite may be attracted to the potentially higher returns from equities over the next decade.”