PwC predicts a two-decade wait for house prices to recover

House prices will take nearly two decades to fully recover the damage wrought by the recession and financial crisis, accountants PriceWaterhouseCoopers (PwC) said today.

Its latest UK economic outlook predicts average house prices will not reclaim their 2007 highs until 2017 in cash terms. But adjusted for inflation, it will take until 2024 to reclaim their pre-recession values, PwC said.

Chief economist John Hawksworth said: "Over the next couple of years, we expect the UK housing market to remain relatively flat while economic uncertainty persists.

"As house prices are likely to stay high relative to earnings by historic standards, and credit is likely to remain less readily available than before the crisis, we estimate a single person leaving university today is unlikely to be able to afford their first house until their late thirties without financial assistance from their parents or others."