House prices 'to take years to recover'

UK house prices will not only decline from their 2007 peak levels, but take four years to rise above that figure, it has been predicted.

The poll of 225 economists by the Society of Business Economists for the ITV Tonight programme found most economists anticipating large price falls.

In contrast, 44 per cent said the market would bottom out in 2009.

Over half predicted prices could fall by as much as 20 per cent and a fifth suggested the drop may even be as much as 30 per cent.

Those who have bought houses recently and may be planning to sell them within the next four years could decide to have renovation work carried out in order to boost the value of their homes to counteract the price falls.

One interesting case of a major refurbishment has occurred in Lincoln, where a house that was vacated when its elderly owner dies in 2006 was discovered to still have candles for lighting and an outside toilet.

Following a revamp from 1930s living conditions to the present day, the terrace has now been put on the market, the Lincolnshire Echo reports.