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| UK house prices 'at risk of fall' | UK house prices 'at risk of fall' |
| (about 3 hours later) | |
| Britain may be facing a fall in house prices similar to that currently being endured in the US, the International Monetary Fund (IMF) has warned. | Britain may be facing a fall in house prices similar to that currently being endured in the US, the International Monetary Fund (IMF) has warned. |
| The IMF says there is evidence to suggest that the UK and a number of other European nations are also vulnerable to a price correction. | The IMF says there is evidence to suggest that the UK and a number of other European nations are also vulnerable to a price correction. |
| It points to the fact that UK house prices have risen far higher than incomes over recent years. | |
| But, it adds, a lack of supply could continue to hold up UK prices. | But, it adds, a lack of supply could continue to hold up UK prices. |
| The IMF also says that the UK and other western European housing markets are in a better state than that in the US, because they have generally avoided the sub-prime mortgage industry. | The IMF also says that the UK and other western European housing markets are in a better state than that in the US, because they have generally avoided the sub-prime mortgage industry. |
| This sector, which specialises in higher risk loans to people with poor credit histories, or those on low incomes, has all but collapsed in the US. | This sector, which specialises in higher risk loans to people with poor credit histories, or those on low incomes, has all but collapsed in the US. |
| 'Risks' | 'Risks' |
| "There remains the concern that the US experience might presage steep housing downturns in other countries that have also experienced a rapid rise in house prices, with associated risks for output growth," said the IMF. | "There remains the concern that the US experience might presage steep housing downturns in other countries that have also experienced a rapid rise in house prices, with associated risks for output growth," said the IMF. |
| The other European nations that the IMF says are at risk of seeing falling housing prices are France, Republic of Ireland, Netherlands and Spain. | The other European nations that the IMF says are at risk of seeing falling housing prices are France, Republic of Ireland, Netherlands and Spain. |
| A number of recent reports have pointed to cooling house price inflation in the UK. | A number of recent reports have pointed to cooling house price inflation in the UK. |
| The Department of Communities and Local Government said earlier this week that the annual inflation rate for property fell from 12.4% to 11.4% in the year to August. | The Department of Communities and Local Government said earlier this week that the annual inflation rate for property fell from 12.4% to 11.4% in the year to August. |
| The Halifax said it saw the same picture in September. | The Halifax said it saw the same picture in September. |