House prices could fall a further 55%
by Gill Montia
Numis Securities, the investment banking and institutional stockbroking firm, has predicted the worst outcome yet for the UK property market.
Analysts at the firm suggest that house prices could slump by a further 55% as Britian faces a deep recession that could extend throughout 2010.
Already 21% below their 2007 peak, Numis estimates that UK property prices remain between 17% and 39% overvalued, based on a fair valuation.
However, the 1990’s housing market slump saw prices dip below fair valuation levels and the firm therefore reckons that a further 55% decline could occur.
Numis supports its argument with the expectation that house price falls will accelerate in the months ahead as amateur buy-to-let investors, some of whom have invest in over-priced city centre flats, sell their portfolios.
Should the collapse fulfill the firm’s predictions, the average UK house price will stand at £96,000, when bottomed out.
The firm is also warning that the recession and Government policies to deal with the economic downturn, could bankrupt the UK.
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Tags: amateur landlords, decline, fall, house prices, Numis Securities, recession, UK
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