Homeowners who bought at the peak of the market face four more years of negative equity, a housing group said.
The National Housing Federation (NHF) said the average buyer in England paid £216,800 for a home in 2007.
They may now have to wait until 2014 before prices recover enough to make their homes worth more than their loan.
According to the NHF, house prices in England will dip again next year by 3%, before steadily climbing thereafter.
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The federation expects prices to be 22% higher by 2015 than they were in 2009, bringing the average price of a house to £226,900.
The NHF, which represents housing associations in England, said in its report that prices are still too high for many buyers.
Unless homeowners wish to sell their property, being in negative equity – when your home has become worth less than the mortgage secured against it – does not necessarily pose a problem.
But it is when people are looking to move that they can face a struggle, as lenders are entitled to insist that borrowers redeem their loans.
In theory, if the mortgage is worth more than the house and the borrowers cannot find the money elsewhere, they will be prevented from moving.
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The company I’m worked with laid off 800 people…Then spent over hundreds of million in order to buy new businesses. Then laid off people at those companies. The problems in the united states of america have NOTHING to do with the government and EVERYTHING to do with private industry – it’s a buyers market, they’re the buyers and they know it..Expect it to get worse before it gets better.