Don't trust govt, bank figures etc look for yourself. in my town a cottage up for 196k in April sold for 152k in Oct, house bought for 305k in July still unsold at 250k, terrace house up for 185k on offer at 145k, price falls of 20-25% min..overpriced houses stay empty cold & damp & will fall more

carol, stamford,

Well if house prices fall so much the cost of building materials and labour will have to drop drasticaly otherwise no-one will build, renovate, improve or extend a property. All the other parts of the economy would have to follow suit and we would have deflation. Can't see it somehow.

Gareth Williams, Powys,

Knock twenty percent off any asking price for a start. Then get ready for the next big shock. Bird flu. Yes it is still out there, festering, waiting it's moment. At least with an economic blow you can still get out and about. With bird flu you might not survive.

Jim, Auckland, New Zealand.

Ash - couldn't agree more!!!

70% reduction is minimum requirement for averages to balance out.

Ian Stabb, South Brent, England

What a joke. ANext year even 65,000 will look inadequate. UK is poorer than people think and the world is calling it. We will join the Euro next year or run an Icelandic risk. Property prices will fall 70% in real terms and then be affordable to average Joe on 18k/year. Why should it be different?

Ash, London, UK

Bravo Darius - well said!

Goli, London,

I’d hardly call 6,500 pounds off a house, as slashing prices.
And where exactly do you people get these figures from anyway.
Wait a year and then see how much the price has dropped.
Another year with good old Gordon, should see prices on the floor.

Mike, Berlin,

Don't know how some of the figures are arrived at, but i see a hu look at ge drop in prices, just look at the FTSE 100 , it has fallen from approximately 6600 to 4200 a fall of 36% off its high, house prices will do the same. £200,000 ,10% deposit,
£180,000 mort . 3 Times multiply £60,000 income. ?

Jonathan webb, Chester, uk

Good news for those wanting to get on that ladder, then!
Greedy Estate agents can convince a seller in one minute that his property is worth 20% MORE, but it takes a whole lot longer for them to admit it is worth 20% less - the human condition, uh?!
A 50% correction is the least that is needed.

Darius Midwinter, London,

What we're seeing now is a correction. Prices were inflated before and need to come down irrespective of interest rate reductions.

Brett, Leicester, UK

It's all a matter of expectations. Cars are in negative equity from day one

David, Bromley,