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UK in the midst of an "economic downturn"
01/05/2008 11:24:00
The recent figures from Nationwide recording the sixth consecutive fall in house prices are further proof of the "economic downturn" the UK is facing, claims one financial expert.
Fool.co.uk warned that the recent statistics from the Bank of England relating to the drop in mortgage approvals also underlined the downturn in the market.
David Kuo, head of finance with the firm, said: "Professor David Blanchflower of the Bank of England has highlighted the possibility that house prices may fall by a third over two or three years.
Fool.co.uk believes that house prices may fall 20 per cent this year."
"So, for those who are looking for green shoots of recovery, they may be some way off yet," he added.
Meanwhile, independent mortgage experts John Charcol said that the fall in property values can be directly attributed to the lack of affordable mortgage funding.
According to the latest figures from the Bank of England, 64,000 loans were approved for those buying or moving home during March.
This is the lowest figure recorded since 1999.
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