Cantor predicts 19% house price fall 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.”