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 Leading analytics firm Global Insight has cast further gloom over the UK property market and economy as a whole by suggesting that there will be little to celebrate about as the nation moves in to 2008.
Having already revised its house price predictions for 2008 downwards - the group now believes that the average price will fall by three per cent - Global Insight has now said that a number of "persistent major headwinds' will hit the economy next year.
Consumer spending growth will be significantly down, the organisation has said, with an expected rise in unemployment likely to increase the number of Britons facing financial difficulties in the year ahead.
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"There is undeniably a very real - and growing danger - that the housing market could see a sharp correction next year," acknowledged Global Insight chief UK and European economist Howard Archer.
"Probably the biggest risk is that the economy slows sharply over the coming months and unemployment starts rising significantly.
"This would be liable to lead to a marked increase in the number of people having to sell for distressed reasons, particularly given the extent to which many households have had to stretch themselves to the limit to buy a house," Mr Archer warned.
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