House prices have been driven by credit and not by supply and demand, one property expert has claimed.
Firstrung said that now this credit has gone the market is underpinned by affordability yet wages have only increased in line with inflation.
Paul Holmes, chief executive officer with the firm, said that in comparison house prices have overshot any measure of inflation by as much as 30 per cent.
"House prices over a five year period will correct by perhaps 30 per cent and in order to recover to the previous boom - arguably November 2007 - it will take a decade or more," he stated.
Mr Holmes added that average wages need to "catch up" with house prices in order for a recovery to take place.
Recently Nationwide reported that house prices fell for the sixth consecutive month during April.
The average house now costs £178,555 – down one per cent from the same point last year.
New Mortgage:- JST Financial, New Mortgage, Re-mortgage Specialists catering for good and adverse credit for UK homeowners