Article: Britain In Recession: Housing: Scottish house prices 'set to plunge by 12 per cent'

SCOTTISH house prices will fall even harder and faster than predicted, leading forecasters warned last night.

Capital Economics said it now expected properties north of the border to lose 12 per cent of their value this year and another 15 per cent next.

The research giant, one of the most respected firms of market analysts in the UK, had previously predicted a more modest decline of 10 per cent in 2008 and again in 2009.

The new, revised forecast would see Scotland's average house price tumble from an official GBP 158,360 in 2007 to just GBP 121,145 in 2009.

Seema Shah, one of the firm's analysts, said house prices had been over-valued by massive increases seen during the past decade. ...

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