Dr Doom warns of mini bubble

Leading economist Roger Bootle has warned investors that property is in danger of suffering from the bursting of another `bubble' over the next year.

Speaking at the BCSC conference in Manchester, the Capital Economics chief told delegates: `The signs are gathering of excessive enthusiasm for property.

`And the danger is that there will be a new mini-bubble forming over the next year, leading to a new fall in capital values.'

Bootle said he believes property currently represents `fair value', but given the weakness of occupational markets he fears that expectations are becoming inflated out of control.

Bootle is also nicknamed Dr Doom after his perpetual bearish views on residential property prices during the decade. Earlier on in the year he was predicting a 50% fall from the peak.

Rather sensibly he has now pared that back to 35%.

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