Sunday, February 24, 2008
Blair’s company gets bearish
House prices will decline by 6% in 2008, and continue falling next year, as anxious homeowners rush to cash in their gains, analysts at JP Morgan warned this weekend. Just three months after predicting that prices would stagnate, JP Morgan's chief UK economist said the evidence now looked 'pretty bleak'. The number of new mortgages approved (a good predictor of future demand) has fallen for the seventh month in a row, to the lowest level since 1995.