//
A reports released today (July 28th) by Deloitte warns that the drop in prices will take have severe adverse effects on household expenditure and investment, according to ThisIsMoney.co.uk.
Roger Bootle, economic adviser for Deloitte, said the recent drop in the value of sterling should help exporters and, as a result, rebalance the economy away from consumer spending.
However, he added: "The lower pound will not prevent the economy from slowing sharply as steep falls in house prices, a squeeze on real incomes and the credit crunch hit domestic demand."
The Bank of England is to release key figures for mortgage spending last month which are believed will show a further decline in approvals as a result of lower demand and stricter lending conditions.
A separate report by the National Housing Federation suggests that house prices could increase 25 per cent by 2013, reports the BBC.
Get a fast return on your money by investing in stocks and shares.
