Fool.co.uk: House prices could fall by 20 per cent this year

Posted 2008-04-29

House prices could fall by up to 20 per cent this year, according to financial site Fool.co.uk.

David Kuo, head of personal finance at the site, believes that the latest mortgage approval figures from the Bank of England are further proof of the distress the housing market currently finds itself in.

Responding to news from Nationwide that it had recorded a sixth consecutive month of falling house prices, Mr Kuo believes the worst is yet to come.

"The recent mortgage approval figures from the Bank of England are further proof that the property market is in the midst of a severe downturn. Fool.co.uk believes house prices may fall 20 per cent this year," he said.

Mr Kuo then stressed that those remortgaging or looking for new loans should borrow significantly less than the value of their properties.

Nationwide reported a 1.1 per cent decline in house prices this month, with the average now £178,555.

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