The UK economy is set to experience its weakest period of growth in 15 years and there is a risk of a recession in the next two years, a report warns.
The Deloitte Economic Review said that the housing market would be at the heart of the downturn, with prices falling by about 5% this year.
The global credit squeeze would make borrowing more difficult, it added.
A prolonged economic downturn may also force employers to "wield the axe more sharply", the report said.
"The global financial crisis and the associated credit crunch have brought an end to the period of easy credit that in recent years has been the bedrock of rapid rises in house prices," said Roger Bootle, Deloitte's economic adviser.
He expects house prices to fall by 8% in 2009.
http://news.bbc.co.uk/2/hi/business/7212545.stm
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