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Experts are warning of the worsening housing market saying that bust is not far away and that house prices could see a drop as large as 20 per cent.
The prediction came from Professor David Miles, chief UK economist at Morgan Stanley, and it will no doubt upset many homeowners who saw their property as a failsafe investment.
Although he admits: “I am at the pessimistic end of the spectrum, but I don't think it should be seen as the pessimistic end because there are as many gainers as losers.”
The average house price is currently around £200,000 but could fall as low as £160,000 if Professor Miles is correct.
This is bad news for many who will be looking to remortgage this year as they come to the end of their terms on fixed mortgages.
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