A financial analyst has suggested that house prices could fall by another 55 per cent and push Britain into a recession and the ‘very real probability’ that it will go bankrupt. Numis Securities said the collapse in house prices was ‘not anywhere near over’ and was scathing in its analysis of the government’s response to the recession, calling its aim to get banks lending again at the same levels of 2007, ‘crazy’. It also warns against anyone borrowing to enter the property market, calculating that the average house price is overvalued by between 17 and 39 per cent and should be just £96,000 based on average earning the lending limit of three times salary plus 25 per cent deposit.
