Homeowners who bought their properties at the height of the housing boom have been warned they face four more years of negative equity.
People that purchased their homes in England at the peak of the market in 2007 paid an average price of £216,800.
However, a forecast by the National Housing Federation has predicted that they will have to wait until 2014 – when average prices are set to rise to £226,900 – before they can recover what they originally paid for their home.
House prices are predicted to rise by 22% over the next five years, according to Oxford Economics, as a result of a lack of new housing supply.
The figures forecast a 7.5% rise this year, followed by a fall of 3% in 2011 and a modest increase of 0.9% in 2012.
A 4% rise is predicted for 2013, with increases of 5.4% and 4.9% in 2014 and 2015 respectively.
Such results would mean continued negative equity until 2014 for homeowners that paid for their abodes at the peak of the market.
The Federation said it feared an entire generation of people would be locked out of the housing market as a result of high house prices.
The chronic shortage of social housing will leave those shut out of the home ownership market with little realistic chance of getting a social home, it added.
"House prices will inevitably increase in the long term because of huge under-supply of housing," commented David Orr, chief executive of the Federation.
"Even though price rises look sluggish for the next few years, affordability is not improving for many low-to-middle income households - as banks continue to restrict their mortgage lending and house prices remain historically expensive in relation to salaries."
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