A top London financier has warned that some Northern Ireland house prices could drop by a startling 80% in value.

Jonathan Davis, who was "laughed off" a BBC NI current affairs programme, in early 2007, when he predicted the property market collapse, has said Ulster prices are set to drop much further than the rest of the UK.

Speaking to a Belfast newspaper, Mr Davis said he "wouldn't touch property with a barge pole", despite developers' claims that the market was at "rock bottom".

Mr Davis reiterated his earlier predictions that most Northern Ireland properties would fall by 50% in value, and that some of the most overvalued homes in the Province would drop further.

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He said it was a "total and utter joke" that Ulster people had though the over-inflated housing market was sustainable.

"I remember being on the Nolan Show on a Wednesday night a year-and-a-half ago and saying the market would fall 50% - I was pretty well laughed off," said the city consultant.

"To increase by 400% to levels not dissimilar to Oxford and Cambridge? For goodness sake, the average wage in Northern Ireland is lower than the UK average wage.

"I'm pretty comfortable in saying that the average fall in Northern Ireland will be 50% which means that some properties could fall 70 or 80%."

Mr Davis said he had told ITV six months ago that Northern Ireland would suffer the worst crash, but the footage was never used.

The Armstrong Davis Managing Director said: "If it was me and I was up to my eyeballs in debt - which is pretty well the only way people bought those properties in the last few years - I would bite the bullet and significantly reduce the asking price."

"This way you can get out of debt - and you can hopefully put some money in the bank rather than continuing to lose it and effectively be working for the bank and the taxman."

Mr Davis advised potential buyers to steer clear of the market for now, and continue renting.

"I would not touch property with a barge pole and would continue renting,” he added.

(PR/JM)