U.K. Home Prices to Drop in 2011 on Loans, Budget

U.K. home prices will fall next year, extending a decline that began in the third quarter, as mortgage restrictions and government spending cuts discourage buyers, a Bloomberg News survey showed.

The median estimate of 23 banks, brokers and property forecasters that took part in the survey was for a decline of about 2.5 percent. Predictions ranged from a gain of 3 percent to a drop of 10 percent.