Mon, 04 Aug 08
City analysts are predicting a house price slump of around 30% over the next three years.
As much as £50,000 could be wiped off the value of the average £185,000 home according to spread betters in the city interviewed in the Financial Times.
Among those to predict this massive drop were Cantor Spreadfair and ABN AMRO.
The predictions come in sharp contrast to a National Housing Federation report released last week that believes prices will rise between 2011 and 2013 by around 25%.
A key factor in the growth, according to the federation is that the supply of new housing is not keeping up with demand – See Home News 28 July 2008.
Later this week mortgage lender HBOS Halifax is due to release its latest house price indices, which are widely expected to show another fall.
The Independent on Sunday says that the annual drop in the July figures could be in the region of 10%, which would be the fastest rate of decline since the building society starting compiling its house price figures.
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