We were wrong about house prices, admits Capital Economics - papers 22nd Dec

Economist Roger Bootle's Capital Economics yesterday conceded the scarcity of new housing combined with easier access to mortgages would defend property prices against a sharp drop, scaling back its forecast to a modest 5% fall over the next two years, says the paper. "Several factors have come to light which might suggest that house prices are likely to remain more firmly supported than we had expected," said property economist Ed Stansfield of Capital Economics. He cited lower interest rates, strong employment growth and looser criteria for securing a mortgage. "None of this is to s...