UK facing 30% house price crash
The International Monetary Fund (IMF) has reiterated an earlier warning that house prices in the UK face a dramatic 30 per cent downward price correction.
The global financial body said that a decade-long housing boom had been driven by speculative house price growth which will now come undone given the current economic climate.
If correct, analysts say the IMF predictions would result in an even-worse house price crash than that seen in the 1990s and would make now the worst time to buy a home for decades.
The situation is further being compounded by worsening conditions in the mortgage market, with the Bank of England warning that the availability of deals has fallen by 70 per cent since the credit crunch began.
David Hollingworth, a mortgage broker at London & Country, told ThisIsLondon.co.uk: "The credit crunch has really got a grip on the mainstream mortgage market and there is nothing you can look to that shows the situation is going to improve in the near future."
Earlier this week, Capital Economics said it was "entirely plausible" current difficulties in the market could lead to a 25 per cent reduction in house prices.
Published 4th April, 2008
© 2008 Estates IT Limited
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The International Monetary Fund (IMF) has reiterated an earlier warning that house prices in the UK face a dramatic 30 per cent downward price correction.