House prices 'could fall further in 2010'

The UK housing market crash may not yet be over and properties could continue to fall in value next year, according to an influential commentator.

A new report from PricewaterhouseCoopers (PwC) has suggested that, despite "green shoots" in the property market, prices could still fall in 2010, although at a slower rate than has been seen over the past year and a half.

The PwC UK Economic Outlook predicts that prices are "likely" to fall, given the current low levels of mortgage lending and property transactions, mixed with rising unemployment.

However, the study does add that there is "considerable uncertainty" about the prediction.

"Although the estimated average UK house price overvaluation of around 25 per cent in mid-2007 has now been largely eliminated, our analysis suggests that house prices could still have further to fall over the next year," said John Hawksworth, head of macroeconomics at PwC.

He warned: "It is important for buyers to take a long-term rather than a short-term view."

The Nationwide and Halifax house price reports have been inconsistent recently, recording both falls and rises in values over consecutive months.

Get a landlord house insurance quote today from Simple Landlords Insurance.