PwC warns on house prices

Despite cries of green shoots in the property sector, Price Waterhouse Cooper’s latest economic outlook yesterday forecast further falls in house prices between 2009 and 2010 before they flatten out in 2011. PwC also says that house prices may not return to last year’s levels until 2020. The new bearish findings are based on projections that UK GDP will fall by just over 4 per cent in 2009, but should start to pick up later this year and into next year, with average growth of around 0.5 per cent in 2010.