Saturday, July 14, 2007
Full story from BofA
One area of particular concern is the buy-to-let market where higher interest rates could trigger a sell-off as unsophisticated investors struggle to meet debt payments. A more likely scenario, said Mr Sharratt, would be "very subdued house price inflation until 2010". He estimates that house prices are currently 20pc overvalued and it could take until the next decade for prices to rebound.