An internal Treasury report, released to the public last week, has predicted that house prices will not move faster than earnings will rise in 2005.
'The Economy - Supplementary Charts and Tables' was posted on the Treasury's website, and was one of the first documents to be released under the Freedom of Information Act. It revealed that the government expected house prices to drop by at least 1% over the next twelve months.
Earnings growth is predicted to be around 4%, while house prices expected to be between 1.5% and 3% lower by the end of the year.
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