IMF warns of UK house price crash

Rising interest rates could trigger a house price crash in the UK, the International Monetary Fund warned today.

The Washington-based group said the value of property in the UK had nearly doubled since 1997, largely as a result of strong growth in disposable income and falling interest rates.

But it said that as the cost of borrowing increased, price growth would slow down significantly, and it warned that a fall in real house prices could not be ruled out.