MPs advised house price falls will bottom out at 20%
by Gill Montia
A Professor of Finance from Imperial College Business School in London is predicting that UK house prices could fall by a further 5% to 10% before the market bottoms out.
Addressing a committee of MP’s, Professor David Miles proposed that the property market should stabilise once house prices are 20% below their peak of summer 2007.
Once this point has been reached, the professor expects a sharp rise in the number of property transactions.
Commenting on the current situation, Professor Miles described trends in the housing market as being driven by people’s expectations of further house prices falls, as well as the lack of mortgage funds.
Also appearing before the Treasury Select Committee, Bob Pannell of the Council of Mortgage Lenders (CML) warned that repossessions could increase during 2009, in response to rising levels of unemployment.
In 2008 repossessions are expected to rise by 50% to 45,000, according to the CML.
Discuss this in the Finance Markets forums
Story link: MPs advised house price falls will bottom out at 20%
Add to Bookmarks:
Related financial stories to: MPs advised house price falls will bottom out at 20%
- Annual house price inflation falls to 3.4%
- Experian forecasts widespread house price falls
- Middle Britian hardest hit by house price falls
- Northern Rock loan repayments could be delayed by house price falls
- Annual house price inflation falls 1%
- Annual house price inflation falls to 4.8%
- HBOS reviews its house price falls predictions
- House prices to bottom out 35% below peak
- Average asking price for a home falls £4,345 in a month
- Annual house price inflation slows to 0.1%
Previous: « HBOS, other rescued UK banks see declines
Next: As banking turmoil calms, fears grow for worldwide recession »
Visited 861 times, 5 so far today
