The International Monetary Fund (IMF) said that there is evidence of the UK and other European countries showing similar trends to those seen ahead of the US crash.

One of the biggest similarities is the price boom seen in the last decade, which saw prices inflate well above incomes. "There remains the concern that the US experience might presage steep housing downturns in other countries that have also experienced a rapid rise in house prices, with associated risks for output growth," said the IMF.

Operations Manager of National Homebuyers, David Harber says, "I have said for many months now that the situation in the UK, although helped by the experiences in the US, will suffer similar consequences. As the number of buyers are limited and lending restrictions are tightened as property prices fall, each and every UK homeowner will suffer a value drop in their property”.

UK house prices, like those in the US have been overvalued for many years. As the average property price exceeds eight times salary.

Recent indices from a number of organizations have revealed that the housing market is cooling but the IMF warned that Britain could be on the verge of a major correction in prices.

Source: http://www.ukprwire.com/Detailed/Real_Estate/ UK_market_may_crash_like_the_US_says_National_Homebuyers_11103.shtml