Property economists Capital Economics has predicted a three year property spiral with prices set to fall until 2007.
Our view
A sad prediction but not rocket science. Always buy low sell high. Property is high other sectors e.g. the stockmarket is low. Investment is simple when you stick to simple rules. As far as those that may get caught with high mortgages and lower property values, start preparing now. Start to pay off a little more on your mortgage or indeed, save a little more on deposit to use when interest rates do go up. Do not ignore these warnings!