Prices may dip ‘by 10%’ this year
Property prices in the UK might drop by about ten per cent in 2008, an advisor to the government has stated.
The view of Professor Davis Miles is that the assumption is based on how the housing market has been behaving over recent times, reports the Independent.
The drop in prices will not trigger a recession, Professor Miles noted, but negative equity could be witnessed if a 15 per cent drop in real house prices happens.
In total, about a percentage point of the growth rate may be seen if the predicted ten per cent lowering were a reality, he contended, something that may interest those with a mortgage.
Yet the official added that if 1.2 million homes hit negative equity, they would merely be "dipping" into this territory at present.
Earlier this week, the British Bankers' Association stated that mortgage approvals dropped to a record low in May.
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