Wednesday, January 14, 2009
House prices forecast.
LONDON (Reuters) - House prices will fall about 11 percent this year and the market will take up to two years to stabilise despite the lowest base interest rates in the Bank of England's 300-year history, a Reuters poll showed. Average house prices are seen falling 10.8 percent this year after diving 16 percent in 2008 and were set to fall a further 3 percent in 2010, the poll of 37 analysts at UK banks, investment firms and consultancies taken January 12-14 showed. Rapidly rising unemployment and a shortage of mortgage credit to new buyers is seen driving future declines in prices.