THE HAGUE, 28/01/12 - A further 8 percent will be shaved off the value of housing this year and next, ING's Economic Desk has predicted.

In 2011, house prices fell by 4 percent. For 2012, ING is forecasting a price drop of percent, with a further decline of 2.5 percent in 2013.

The ING economists held a survey among thousands of respondents per day in the past week. Due to declining purchasing power and rising unemployment, ING expects house prices to remain under pressure.

Consumers turned out to be gloomier on the housing market than last month. Nearly one-quarter have seen the number of homes sold in their own street decline in the past months.

Three out of 10 home-owner respondents with a mortgage indicate that the value of the home is not sufficient to pay off the mortgage. Half of the home-owners regard their home as a supplement to provisions for old age.