House prices to fall 50% over four years

House prices are expected to fall by 50% in real terms in four years, reports the Guardian today.

The newspaper quotes the key index of property prices which show that the average UK home will only recover its current value in 2017.

By the end of this year prices will be down by 10% and by a further 10.5% in 2009, according to the index.

Prices will then keep dropping through 2010 and cut values by 23.5% when they hit rock bottom in 2011. House prices will then begin a slow come back over the following six years.

Liberal Democrat Treasury spokesman told the Guardian that the figures revealed that property investors had little confidence in the market.