Fears that prices could fall by 50 per cent

The UK housing market could see prices fall by 50 per cent, according to the Debt Advice Bureau.

[UKPRwire, Mon Oct 08 2007] The not-for-profit organisation looked at house price growth against Gross Domestic Product (GDP) figures since 1952, reports City Wire.

It found that whenever house price growth reached more than 15 per cent of GDP there was a subsequent fall, which saw price growth cool by between 62 per cent and 80 per cent of economic growth.

Further to this, in the 1970s house price growth hit 120 per cent of GDP growth and this was followed by a huge crash.

Julian King of National Homebuyers says, "Homeowners looking for a quick property sale are in for a shock.

"In order to achieve the home purchase of your dreams, you will need to adhere to the timescales of the chain. The current property market situation does not afford most homeowners this luxury".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that offers a Sell and Rent Back and fast sale solution for homeowners who need a quick property sale.

"House prices have fallen to less than 80 per cent of GDP growth in 1977 and then slumped further to 78 per cent in 1982" adds Mr King.

Now the Debt Advice Bureau is warning that we may be about to enter another period of financial difficulty.

It has revealed that house price growth has now reached 122.57 per cent, signalling that a significant correction is on the cards.