House prices are set to fall by 6% over the next two years, a report from consultancey Capital Economics has predicted. The Times. Financial Times. The Daily Telegraph

Britain will follow the downward trajectory of house prices in the US, Ireland, Spain and France by suffering from the end of the global housing boom, it said.

Its forecasts is a gloomier scenario than the slowdown of 2004 and 2005, when property inflation slowed from 20% to 2%.