House prics are set to fall by as much as 10% over the next two years, a top economic forecaster will warn this week. Sunday Telegraph
The fall will be accompanied by a 40% decrease in the number of people moving home, according to the Ernst & Young ITEM Club.
The Work and Pensions Minister, Stephen Timms, and the Chancellor, Alistair Darling, plan separate meetings with representatives of the Council of Mortgage Lenders, who are expected to urge greater state support for borrowers facing higher mortgage costs as a result of the global crisis.
This week’s report by Peter Spencer, chief economic adviser of the ITEM Club, will paint a picture of economic gloom over the coming months. It will urge the Government to take 'firm and decisive action' to stop the economy slowing down from last year’s growth of 3.1% to 1.8% this year and 1.5% next year.