The slide in house prices will continue for at least three years and crush the value of a home by almost 50% in real terms, according to a key index of property price futures, The Guardian reports.
Indications from futures trading on long term property prices shows that the average UK home will recover its current value only in 2017.
By the end of this year prices will be down by 10% and by a further 10.5% in 2009, according to the index. Prices will keep dropping through 2010 and cut values by 23.5% when they hit rock bottom in 2011. House prices will then begin a slow climb back to current market values over a period of about six years.
RECORD SURGES IN crude prices have propelled the world into an era in which oil may never be cheap again and energy security will become the foremost concern of governments everywhere, the G8 heard yesterday, according to The Times.
With oil hovering just below $140 a barrel, an unprecedented gathering of the world’s most voracious energy consumers ended in Japan by expressing concerns about prices. It also tacitly admitted that the old rules of energy markets must be torn up if the world was to avoid a crisis.
BRITONS MUST STEEL themselves for a fall in living standards which could be as sharp and painful as in the 1970s, as the western world faces up to a new era of stagflation, a former Bank of England policymaker has warned, The Telegraph reports.
Willem Buiter, one of Gordon Brown's first appointees to the Bank, said Britons face a "painful couple of years", and urged the Monetary Policy Committee to raise rates twice to cap inflation.
His warning followed Friday's chaotic day of trading on Wall Street, where oil prices soared more than $11 to a new record high just below $140 a barrel and the Dow Jones index of leading shares fell by 400 points.IFAonline
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