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House prices face shock 20pc collapse

Wednesday 23rd February 2011
Turbulence in the housing market looks set to get even worse amid predictions of another huge fall in UK property values.

House prices could drop up to 20% over the next two years as a result of increasing unemployment and public spending cuts, it is claimed.

"Prices are trending slowly downwards at the moment, but our view is that this is really the start of the second leg of the correction, and we expect prices to fall significantly further," said Paul Diggle, property economist at consultancy Capital Economics.

The Guardian reports that he calculates the average home remains up to 20% overvalued by historical standards.

House prices fell by around 20% between 2008-2009 - but made up half the losses last year.

Could the same be about to happen again? Click here to read full report in The Guardian, then tell us what you think using the comment section below

Mike Jones

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Added by Ian Richardson on 2011-02-21 05:01:25

House prices should apply to the UK, for it is an artifical cost driven up our down by the vested intersts of the Banks and Building Societys, and the Landed interests,
Another huge con on the average public, there is NO real reason for the insane markets in the UK to push that evryone should be a Home Owner, most of the World have NO such fixation with be a Home Owner, It only puts a chain around the owners neck and perpetuates the cycle of GREED, So we should all welcome l;arge falls in the hosuing markewt to bring the amrket to where it should have been and make homes affordable to evryone,
Let us not line the pockets of Bankers and House Builders whose only aim is one of PROFIT
Added by Matthew on 2011-02-21 03:56:24

Oh joy! I exclaimed, Imight be able to afford a house at long last, until I put two and two together and realised that this was the Guardian, a left wing paper, reporting about a generally right wing worry! How sad!
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