We have cut our forecast for house price growth in 2008 from 0% to -3%. We also expect house prices to fall by a further 3% in 2009. Since the previous Analyst, credit conditions have tightened and the risk of a USstyle sub-prime crisis in the UK has grown. Coming on top of our existing concerns about the poor levels of affordability in the housing market, we feel these developments have left our previous forecasts looking too sanguine.
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