UK property in ''correction''


Thu 16th Oct, 09:35:14 BST

The UK property market is in the middle of a period of correction, it has been reported.

According to asset management firm UBS, the situation in the UK is not as severe as in the US, but the company claims prices will drop by between 15 and 20 per cent.

The company said that a lack of first-time buyers making it onto the housing market is putting pressure on the entire "value chain".

Coupled with a lack of liquidity and the decline in the number of mortgage approvals, UBS said an appropriate response from the Bank of England would be to reduce interest rates further.

However, the company said the Bank is unlikely to cut rates because of high oil and food prices.

Yesterday, leading estate agent Knight Frank told the Financial Times that property prices have already lost almost a third of their value compared to their 2007 peak.

Carry out a property search.ADNFCR-1143-ID-18828981-ADNFCR


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