Academics are predicting house prices will slump by up to five per cent across the region this year.

Thousands would be wiped off the value of homes in London and the South-East as the housing boom slows to a halt.

Experts from Bognor-based Technical Forecasts Ltd used the latest computer technology to simulate what could happen in the coming year.

They found house prices would fall in all areas south of Yorkshire, particularly in the South-East.

While this is good news for people hoping to get on to the property ladder, those who purchased their homes at the top of the market could slip into negative equity.

Technical Forecasts uses mathematical models for its predictions and, unlike building societies which produce monthly figures, does not sell properties.

Company director Mandy Bradley said: "Using data from the Land Registry, our forecasts for three years ahead show no downturn overall.

"But a forecast by region comes to a totally different conclusion. It shows a downturn in parts of London and the South-East.

"We are not quite sure what this means at the moment."

The findings go against the predictions of the Nationwide.

Alex Bannister, the firm's group economist, yesterday forecast a price rise across the country of ten per cent this year and up to 15 per cent in some quarters.

He said during 2002, prices rose by 25 per cent - the equivalent of £65 a day.

But he admitted "certain pockets" could see price falls in 2003.