House prices 'to drop a full 15 per cent in 2009'

Posted: 16 Dec 2008 12:31:02 GMT

The chief executive of Barclays Bank, John Varley, has offered one of the more conservative estimates of 2009 house price falls to Sky News.

In the latest of many predictions concerning house price falls, Barclays chief executive John Varley told Sky News that a fall of up to 15 per cent could be expected by the end of next year, despite many other analysts already having predicted a 20 per cent drop in values.

"The negative house price inflation started in 2007, it's accelerated in 2008," said Mr Varley.

"We're probably about halfway through that period, so in other words we've got another ten to 15 per cent to fall between now and the end of next year."

Whichever prediction proves correct, there is certainly little chance that buying property will be found to be popular in the coming months.

Instead, those hoping to make a return on the property market could be attracted to investing in the rental market, which tends to boom during falls in the property market.

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