Wednesday, January 2, 2008
Big guns predict big falls
Julian Le Grand of the London School of Economics said prices could fall to 5x average earnings from the current 9x. John Van Reenen and Willeim Butier, also of the LSE, predicted house price falls of 20-30% over the next couple of years. Philip Booth at the Institute of Economic Affairs sees price falls of 10 per cent in 2008. James Knightley at ING said mortgage equity withdrawal could "grind to a halt." Lombard Street Research, which conducted the survey of 52 leading economists, said falls of 4% should bge expected in 2008.