Monday, August 4, 2008
Follow the money
House prices are expected to fall by almost 30% during the next three years according to the leading indices of property price futures. About £50,000 will be wiped off the value of the UK average house price of £185,000 by 2011 judging by current trading on spread betting platforms, more than most commentators currently expect. Residential price derivatives, which are commonly used by institutional investors, are also implying a fall of between 25 and 30 per cent. Meanwhile Tradition, an interdealer broker, says that the average UK house price is expected to fall to £153,591 next year and to £137,233 in the next three years.