Further house prices and possible bankruptcy in store for UK

A leading forecaster in the UK has said that the UK could be in for not only further house prices falls of a significant level but could also be in store for bankruptcy, which was not ruled out of the question. The date came from a report that was recently leaked from Numis Securities. It predicts a very bleak possible outlook for the UK in a number of ways.

The report predicts that in total the level of house price falls in the UK could end up reaching 55 percent, and that the collapse in house prices, which is already said to have exceeded 20 percent, is a long way from being over. Millions of homeowners in Britain could be left in negative equity if this prediction comes to fruition according to the report.

In October of last year it has been reported that the nation was on the brink of bankruptcy, which was just a few hours away due to mass intended withdrawals from the UK’s banks by major investors. Although this situation was resolved before things went too far, the report indicated that there was still a very real chance that Britain could end up being bankrupt.

The report said: ‘The bankruptcy of the UK is a very real probability as the UK government is trying to stimulate a greater debt burden in a grossly over-indebted economy. We believe the scale of the imbalances in the UK means there is no prospect of a recovery in 2009 and we expect the UK to be mired in a deep recession through all of 2010.’