22-10-2007
UK housing market won't crash say experts
The UK's housing market is unlikely to crash, a new report has claimed.
According to new data released by Ernst & Young, the UK's property market is not teetering towards a major recession and, despite a possible stall in house prices, it should remain resilient in 2008.
Moreover, the Ernst & Young Item Club report also estimates that the outlook for interest rates in 2008 will be somewhat lower than at present.
"Activity is likely to fall and prices may stall through 2008," said Peter Spencer, chief economic adviser for the Item Club.
"But as interest rates come down and new supply remains restricted, the foundations will be laid for renewed real price growth in the long run," he added.
The report also predicts the country's economic growth for next year will drop 0.4 per cent to 2.1 per cent.
In related news, the recent credit crisis in the world's financial markets has led to calls, by a number of leading bankers in the private sector, for the implementation of confidence-restoring reforms.
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