When the stuff hits the fan, if mortgages become abundant again and buyers are desperate to buy,from an ever dwindled supply, the pent-up demand for homes will presumably escalate prices again, perhaps to record highs.

Piggy Kruger, Bridgwater, UK

The Empoyment figures are no area of comfort in this Financial crisis. It is those in employment who have borrowed to the maximum of the value of their asstes and those asset values are now falling or in question. This is not just about mortgages but unsecured ,secured loans, credit and store cards.

john wright, clacton on sea, England

Unemployment is a trailing indicator. As long as "buy to letters" are allowed interest only mortgages, first time buyers will be priced out of the market. The government's affordable housing policy is a tax on development which makes dwellings more expensive for all of us who don't qualify.

Arnold Ward, Weybridge, Surrey, UK

No mortgages because there's no space-- England is full. My wife and kids are leaving for Orleans in France next year, my neighbours and friends are leaving for Spain, Germany, Denmark, Austria, Italy, Sweden, even Norway, Finland, Portugal and Belgium. You have space there, and you can breathe.

Mark C, Bradford, England, United Kingdom

Remember Brown building 3 million extra dwellings.As he has lived a cloistered life he has never experienced the apparent anomaly of when prices are rising there is a shortage of property and when as now the housing market is struggling supply miraculously increases. Another Brown miscalculation.

Tony, London,

All the comments miss the importance this Government, in it's third term has played overall in the present situation.

All speak about confidence referring to the mortgage sector. The new home buyer now, on top of the new stamp duties, has to have 9 months mortgage repayments in reserve.

Terry G, Manama, Kingdom of Bahrain

As usual, no mention in the media of the building of social housing. From a non-mortgage private tenant with children who still cant a property where they work,perhaps the local councils should buy these available properties and fill the gap made by the right to buy.

deecoen, Hastings , East Sussex

Here's an idea. Build a house for the 80k that it costs. Sell it for 100k making a healthy 20% profit. Legislate to deter buy to letters from buying them all. Problem solved! Oh dear, I've just realised I made the mistake of expecting our govt to do the right thing!

Neil, Birmingham, U.K

Very few of the trade comentators in this debate seem blinkered to what remains potentialy the most severe downturn in house values for decades. That is SENTIMENT.
If, for a moment you could put yourself in the shoes of a first time buyer, would you buy now? What is the common sense answer ?

David Nammory, Liverpool,

How many times have I heard this silly argument about low unemployment level favouring house prices? what matters, as any financial analyst knows, is not the static level, low or high, but the dynamic trend, increasing or decreasing.

Frederic Dodin, Camb, UK

"Why build houses if the mortgages aren't available?" There are plenty of mortgages available with a sensible deposit, and houses are needed for the growing population. A return to less reckless lending standards should be applauded. Doh....

Graham, London,

"Houses are still more affordable, in terms of the mortgage payments as a percentage of disposable income"

Shouldn't one factor in the inflation rate at the time? Even if this percentage (payments/disp inc) was higher in the 90s, it erodes faster with a higher rate of inflation, no?

Grant Galbraith, London,

So the strategy is to suppress supply hoping demand for limited supply will increase and as a result prices will maintain. Idiots. Hw about building affordable homes instead ? New homes are overpriced - and remember these "property clubs" buying up new build estates en masse are ancient history

Roarke, Wembley, Uk

Why build houses indeed, especially on virgin land, smothering over an already asphyxiated earth? Money, money, money, doesn't seem to -- as sung in Cabaret -- make the world go around, but to strangle it.

eugene, heidelberg, germany

The UK's muddle-along housing strategy is a disaster. Either accept the US model where booms get followed by slumps, or build more affordable housing and regulate the excess profits of builders and owners. You cant have free-for-all when the market is booming and intervention when thing turn sour.

geoff nairn, donostia, spain

But the Government is about to demand construction thousands of dwellings to satisfy its Eco Town initiative! The big failure of the British house market was the lack of legislation to control buy to let a trade conceived to try and make up for the Chancellor's pensions debacle.

Malcolm Turner, Alsager, England

Why not build houses that people can afford. I don't need 4 bathrooms. A good house costs approx. 50-100K to build but they think they need 200K profit. I am never buying a house it's just a rip-off all round.

Frederick, London, UK

When the country's run by idiots
With the years of greed from banks and
the sheep who think house prices will only ever go up
Is it any wonder we're now in this mess ?

JB, London, England

Houses not selling? Put them up for auction. get real!

michael clarke, kensington, london

My own hope is that the problems builders are now having will mean that I will soon be able to persuade some of them to deign to quote for maintenace jobs on the house I already have. I haven't been able to get a painter and decorator for about 20 years.

Tam Earl-Aine, cheltenham,

whilst the govrnments of britain leaves th ehouse stock to chance qand speculation te british public willbe chips in a game winner takes all namly theproperty developer. Afordable housing was the buzz word of the last ten years with loans at 5 to 7 times income.

michael, cahersiveen>adams towns, madness

I thought one of nuLabours boasts was that there would be no more "boom and bust" economics under them.We've had 10 years of boom and now they'll be one hell of a bust.I still believe prices are roughly 30% over valued and that sellers will have to be more realistic in their valuations.

Mike, Dunstable, England

"the number of people claiming jobless benefit at its lowest level for more than three decades."
This is misplaced optimism. The jobless figures are low solely because of manipulation of the statistics. Perhaps as many as two and a half million being classed as disabled when they're not.

Polly Parish, tenby, wales

You must be ignoring fuel bills, transport costs and food costs, all of which are far, far higher than the 90's. Also, unsecured debt, student loan financing by parents, job security heading south, inflation heading up and a lack of mortgages.

This bubble will continue to burst for some time!

Dean, Cardiff, Wales

Quote: "In particular, employment remains robust" - but for how long? Employment levels are a lagging indicator - unemployment is bound to rise as people are laid off and Government spending stagnates. As for immigration - it better had be curbed!

Richard, Worcester, England

The house market can't be view in isolation, rather it is a part of humanity and the way we exist. Very high employment has desastrous economic consequences. As do the masive inflation of food, commodity, and fuel prices. Humanity is revaluing its economy, until it has, we won't be moving homes.

Ian Parker, Wigan,

Look - they've had a good run haven't they?We all have.But the game's up now.The scam's over. And be honest - we all knew. Have you heard anyone in the past ten years discussing house prices without someone saying 'Mad isn't it?'
Free car?Some houses still wouldn't sell if it was a Bugatti Veyron.

eric campbell, harrogate, uk

This is like the the early 1990s all over again but the causes of the problem are different; the results however will be the same. There are going to be a lot of redundancies in the construction industry and house prices are going to go through the floor. The risky lending days are over.

Chris, Oxfordshire,

I accept that businesses exist to make money and maximise profits. But if that concept was changed to reflect an ‘honest’ level of profit and not the thievery level that has been used whilst selling the ‘brick box’ then the developers may still be selling!

Keith, Newcastle, England

Why would anyone in their right mind pay £200K for a brick box that costs no more than £50K to build? Only when that balance is restored will any sensible banker lend money with "brick boxes" as collateral.

Persimmon are dead-right... "We stop building until we know what a house costs !".

Pedro, Stratford,

Why not build affordable houses?Mortgages are still out there, only at sensible prices.Maybe the builders shouldn't have been giving false valuations to lenders as was the case with many new build BTL flats.They have been pocketing mikkions from this.What goes round comes round.

stephen hulton, eure, france