Nash Peters

UK HOUSING MINISTER SEES 5%-10% HOUSE PRICE FALL IN 2008

A set of secret Cabinet briefing notes accidentally revealed by the housing minister added more gloom to the picture of the UK economy, media reports said.

UK Housing minister Caroline Flint's note said house prices could fall "at best" by 18% in 2008. The notes also said "We can't know how bad it will get".

The notes were photographed as Flint carried them to 10 Downing Street to attend the weekly Cabinet meeting on Tuesday morning.

Reports said citing the notes that Flint expressed concerns over housebuilding. The notes read "Housebuilding is stalling". "New starts are already down 10% compared to a year ago. House builders are predicting further falls". "Having seen net additions reach roughly 200,000 in each of the last two years, the figure for 2008-9 is almost certain to be well down on that."

The notes also highlighted the rise in repossessions, while giving a reminder that "the 2007 figure was only around a third of that in 1991".

Flint said in the note that she will announce a package of measures to assist first time buyers.

Concluding note that was visible in bold type read "But it is vital that we show that at this time of uncertainty we show that we are on people's side".