The head of one of the world's leading banks has warned that falls in the UK property market are far from over.

In an interview with the Daily Telegraph, Barclays chief executive John Varley suggested that the cost of a typical British home could fall by an additional 15 per cent over the course of 2009 as the market bottoms out.

While this news is unlikely to be welcomed by prospective buyers or sellers, it will serve as further justification for UK landlords as it prompts the movement towards the rental sector to continue for the foreseeable future.

"Our view was that from the top the bottom you could see a fall of something like 25 to 30 per cent,"Mr Varley told the newspaper.

"We're about halfway through that period. So in other words we've got another ten to 15 per cent to fall between now and the end of next year."

These predictions come soon after rival banking group HBOS released its UK property figures, which revealed that the average value of a home has fallen by £36,000 since the downturn began.

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