Property prices will fall by 40% from their peak in 2007 unless Government action succeeds in boosting mortgage lending, according to the Centre for Economics and Business Research (CEBR).
The think-tank said 2009 will see the largest single year fall in UK house prices without an improvement in lending conditions. It predicted the average house price could be as low as £139,000 in five years' time - just £1,000 more than the average price at the end of 2003. The authors of the report forecast prices will fall 32% peak to trough from the third quarter of 2007 with prices bottoming out in the first quarter of 2010. This scenario could happen if the Government's banking bailout is able to stimulate a modest improvement in mortgage approvals from today's levels of 32,000 p...
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