If the current profit margins are maintained, it means mortgage rates will be pushed up to 8 per cent, according to Capital Economics.
City consultants Capital Economics forecasts the price could breach $2,000 by the end of next year.
Capital Economics is an economic research consultancy based in London.
Capital Economics of London reckons the workforce is likely to peak during the next five years.
Capital Economics said it was "hard to see any reason to be optimistic".
Capital Economics estimates the tax and benefit changes will knock £2.3bn - or 0.25pc - off household incomes this year.
Capital Economics expects manufacturing output to have "continued to contract at a rapid pace".
Vicky Redwood, of Capital Economics, was also concerned about future downward trends.
Capital Economics have long predicted that this crisis will force the eurozone to break up, and isn't changing that view today:
I'm very interested in the quote on yesterday's live blog from Capital Economics (?)
