The IMF has warned the UK housing market could be about to enter a slump like that seen in the US.
However, the IMF says high demand and short supply in the UK may be enough to hold up prices.
The IMF calculated UK property prices have risen by 50% more than they should have over the past ten years, indicating they are highly overvalued. The IMF says house prices may even be as overvalued as those in the USA, which is currently suffering the worst housing slump for 70 years.
Several other Western European countries were identified as being at high risk of falling house prices, including France, Ireland, the Netherlands and Spain.
However, the IMF says European countries could be at less risk than the US as they have relatively small sub-prime mortgage sectors. Historic underinvestment in property could also help support prices in the UK.
Most analysts say actual price falls are unlikely, but many are predicting below inflationary rises in property value over the next few years, allowing wages to catch up with the market.
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