The British housing market in danger of following the slump in American house prices, the International Monetary Fund said yesterday. The Times. The Guardian. The Daily Telegraph
The IMF warned that the property boom of the past 10 years has left the British homes overpriced by up to 40% — far exceeding the overpricing that precipitated the US property slump.
The IMF report said: ‘The extent of house price overvaluation may be considerably larger in some national markets in Europe than in the US. The estimates suggest that a number of advanced economies’ housing markets outside the US could be vulnerable to a correction.’