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House prices to fall by 10 percent

The latest housing data reads as depressing news for homeowners, as mortgage approvals for house purchases experienced stagnant month on month growth, rising to 30,509 in May – up from 29,747 approvals in April.

Howard Archer, Chief UK and European Economist with IHS Global Insight said that, as a result: 'we expect house prices will end up declining by some 10pc overall by the middle of next year.

He added: 'This implies [house prices] will fall by around 5-8pc from current levels depending on which house price measure you take.'

The figures reinforce his belief that modest falls in house prices are likely over the coming months, as concerns about interest rates and fiscal policy contimue.

'On top of that persistently high unemployment, elevated debt levels and still significant difficulties in getting a mortgage (particularly for first time buyers) do not bode well for house prices,' he said

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