Chief executive of Nationwide thinks U.K. house prices could fall 25% from peak.

Graham Beale, the chief executive of the Nationwide Building Society, has today told BBC News in an exclusive interview that he thinks house prices could fall as much as 25% from their peak. If correct, this prediction implies 2.5 million homeowners could be pushed into negative equity. Mr Beale, whose opinions are well respected, doesn’t expect to see signs of recovery until 2010.