19% house price fall predicted by 2010

Cantor Spreadfair, the housing spread betting firm which allows investors to bet on the Halifax House Price Index, is predicting house prices will fall 19% by 2010.

It predicts the average UK and Greater London house price will be £141,500 in December 2010, a 19% drop on the current £174,178 average on the Halifax index.

This represents a drop in value of approximately £33,000 over the next 27 months.

The average traded price on Spreadfair for the Dec ’10 average UK house price during August was 141.5 (which represents £141,500) against an average traded price of 137 (£137,000) in July. This represents a month on month rise of just over 3%.

James Lippett, head of sales at Spreadfair, says: “The green shoots of recovery for the housing market are still taking life on the Spreadfair betting exchange. For the second month in a row the future price of an average UK home in Q4 2010 has crept upwards. August has seen the average traded price rise by 3%, with the average monthly prediction of £141,500.”