UK House Prices Might Fall Again – IMF

In its latest world economic outlook published in October 2010, the International Monetary Fund (IMF) warned that house prices in the UK might experience another double dip in the near future.

The concerns of the world financial regulator are based on the current level of house prices, which are, in the opinion of IMF experts, too high. Financial specialists are also determined that policy support might not be enough to prevent the double dip.

IMF claimed that the reason why house prices have risen in the aftermath of the economic downturn is the exemption on stamp duty for UK first-time buyers. This tax holiday also helped boost the demand from consumers, thus leading to sustained activity on the housing market.

Now, however, the future of the UK property market vastly depends on the overall economic recovery and refinancing options available for borrowers.

The good news is that the situation in Great Britain is not as gloomy as in the United States because the risk of house prices decrease is lower in the UK.

The full text of the IMF report is available at the organisation’s official website.