The housing market faces a double dip in house prices, a Reuters poll of industry analysts has found.
The poll, taken over the past week, found that more than two-thirds of the 30 housing market analysts it surveyed predict UK house prices will "double dip", with most expecting a 5% fall from current levels.
Economist, John Hawkesworth from PriceWaterhouseCoopers (PwC), said: "There are likely to be further falls in house prices over the next year given the dampening effect of the fiscal squeeze, restricted mortgage availability and fragile household confidence levels."
Another analyst, Ray Boulger of brokers John Charcol, said: "In the short term, the biggest risk to house prices is the FSA's Mortgage Market Review."
The poll showed monthly mortgage approvals have stagnated at around 50,000, less than half the 104,000 monthly average in 2007.