British Property Prices Seen Falling

Two large British property companies warn of the ongoing impact of the credit crisis on the residential and commercial markets
The global credit crisis has already had a serious impact on both the residential and commercial property markets and the problems will continue, two of Britain's biggest property companies warned yesterday.
Bovis Homes, the housebuilder, said it expected its average sale price for 2007 to be 3 per cent lower than a year ago, while Liberty International, the real estate investment trust, warned investors' appetite for commercial property was showing signs of waning.
Bovis, the UK's fifth-largest housebuilder, warned that consumer confidence had been damaged by turmoil in the financial markets. "People have become nervous," said Malcolm Harris, the company's chief executive. "What we need is for the market to return to normality and people to get their confidence back."