House prices 'won't recover for 15 years'

House prices will take a further 15 years to reach pre-credit crunch levels once more, it has been reported.

Commenting on the time it would take for the average property to both bottom out and then reach August 2007 levels once more, one analyst has put 2023 as the year prices will return to the previous high.

Andrew Clare, professor of asset management at London's Cass business school, said that property prices will likely return to levels last seen at the peak of the property boom after the market bottoms out between 2011 and 2013.

This will mean the recovery of house prices will take twice as long as their expected descent.

Such a negative outlook may encourage some households to look for short-term financial fixes, such as reducing outgoings, but if property prices are to remain low for some time to come it may be that other routes, such as renovation, should be considered in order to add value to a property.

Home insurance certainly shouldn't be overlooked, as cancelling a contents or buildings insurance policy until 2023 would leave homeowners extremely exposed to risks of damage to their property.

16/10/2008 15:14:11