Coronavirus is a "global epidemic" with a "higher death rate than flu", says the UK's chief scientific adviser.
Sir Patrick Vallance said most people who catch the bug will suffer a "mild illness".
He said the Government is "looking at" forcing entire households to isolate during the outbreak as part of "more extreme" precautions to prevent the virus from spreading.
Sir Patrick was speaking a day after a patient with underlying health conditions became the first person in Britain to die after testing positive for the flu-like illness, also known as Covid-19.
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The patient, a woman in her 70s, had been "in and out of hospital" for other reasons but was admitted on Wednesday evening the Royal Berkshire Hospital in Reading and tested positive.
At least 116 people have tested positive for coronavirus in the UK and the number is expected to rise again on Friday.
Health chiefs said people diagnosed with coronavirus who show only "very minimal" symptoms should self-isolate at home rather than in hospital.
Last week, a British tourist who had been on board the Diamond Princess cruise ship, which was quarantined in Yokohama, Japan, became the first UK citizen to die from the virus.
Eighteen people have so far recovered from coronavirus in the UK and 45 people are being treated at home, as of Thursday night.
With the UK moving into the "delay" phase in action plan, there are fears that a large epidemic would push the NHS to the limit and result in a shortage of critical care beds.
This phase could include measures such as school closures, encouraging greater home working, and reducing the number of large-scale gatherings, if necessary.
Sir Patrick said coronavirus is "very infectious" but, seeking to reassure the public, added that most people who get it will only have a "mild illness".
He told Sky News: "It's got a higher death rate than flu and a higher burden of illness than flu.
"It's not like ordinary flu. On the other hand, it's a million miles away from things like Ebola, which are absolutely lethal at a very high level.
"We're talking about a potential one per cent or lower, and I think probably lower, mortality rate.
"It's more dangerous than flu but for most people, the vast majority of people this will be a mild illness.
"So for 98, 99 per cent of people this is going to be a mild illness.
"For a smaller number this can turn into a serious pneumonia and for a smaller number, again, this can lead to death, particularly in the elderly and those who have got other co-existing medical problems."
Sir Patrick also said the Government could force entire households to self-isolate.
He added: "Self-isolation is possibly usually within houses, it means that you stay in your room, you get things delivered to it and stay there for 14 days.
"Household isolation would mean the household – that's obviously an more extreme move.
"Again, we're modelling that we're looking at that in terms of what the options might be."
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