House prices may fall by a further 55 percent and there is a "very real probability" that Britain will be bankrupted, a leading investment bank has warned in a private note to clients.
People who bought buy-to-let flats are expected to “begin panic selling” and the average home value could drop below £100,000.
The predictions in a 298-page report from Numis Securities, a City investment bank, are the bleakest yet on the deteriorating state of the British property market.
House prices have already fallen by about 20 per cent over the past year.
However, in the note written last month, Numis said: “Despite UK house prices already having fallen 21% from the peak, we do not believe that the correction is anywhere near over.
“Our core headline forecast is that UK property prices remain between 17% and 39% overvalued based on fair valuation. Moreover, history has shown us that when property…which has experienced a price bubble corrects, the price tends to fall below fair value for a period of time, as confidence in that market remains low. Prices could fall a further 40-55% if the over-correction was as bad as the early 1990s in our view.”
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Within the last month, ABC 20/20 had a feature on Bernie Madoff that concluded nothing's been done about Madoff's prosecution because most of the people involved are Jewish, so he perpetrated fraud on his own ethnic group. To the larger world, the fraud doesn't matter. It's amazing how fast the Madoff sentencing speeded up.
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