According to the Bank of England's Governor Mervyn King, house prices in the UK are set for a big slowdown over the next 2 years. Whilst he anticipates house prices to grow in the near future, this will apparently not last.
The slowdown will apparently be due to a slacking of consumer spending as disposable income and house prices even out.
Our View
Who can tell? Everyone has been predicting house price crashes and falls in value for the last 12 months! As long as people continue to earn and spend and interest rates and inflation remain low, house prices will continue to rise.
The only time when house prices will fall is when people cannot afford to move. This will be high interest, high inflation and high unemployment. Properties for sale will flood the market, supply will exceed demand and prices will fall.