House prices will be at a lower level by the end of next year than they were in 2004, it has been predicted.
The centre for economics and business research (cebr) has suggested that prices by the end of 2009 will be 25 per cent lower than at their peak last year.
And the body has stated that the market will see few transactions as many buyers wait for a bottoming out.
"Confidence in the housing market has been shattered as lack of mortgage availability has left few sellers chasing even fewer buyers and expectations of falling prices have become embedded," said managing economist Ben Read.
However the cebr forecast a recovery in 2010, as it expects a wider availability of credit to encourage more buying.
Meanwhile Hometrack has found that the average house price in England and Wales fell by 1.3 per cent to £163,200 this month.
Published on: October 27, 2008