There is a possibility of a 'correction' and it will be nothing more than that (no more than 5% in my view), particularly in the London market where it remains affordable for many first time buyers and home movers with demand still being strong.

I am a mortgage adviser in London and I see firsthand how much people are borrowing in relation to their income, my business in mainly in the 'prime' market and this is the largest of all mortgage markets (ie.sub prime, BTL etc).

You can talk house prices then & now all day long, prices / demand vary so much area to area that you cannot assume this applies to the whole of the UK, I bought a 4 bed terrace in SW London in July 2006 for £330,000 and sold in June 2007 for £495,000 properties like this are now on the market for £530,000 and selling, what’s my point? the point is if there is a correction in may not affect everyone and will very much depend on the area in which you live.

SH, LONDON, UK

Neil Miller, 'Hooray'indeed! Of course you will be able to walk out in the street and pick up a nice house in Canonbury reduced from £1 million to £10,000 won't you?. All those who revel in the prospect of a crash are engaging in fantasy. Remember that neither you nor the OECD have decisionary powers in this matter.

Dectora, London, UK/ex Ireland

Lucy, Greater Manchester, UK. I agree totally. My house was valued three years ago and an identical property sold last month for less than 10% more than this valuation. That's an average rise of around 3% per year and in the supposedly hotspot south east. I suspect that many property investors will be in for a shock even before any falls in prices if they have relied on the national figures and hype rather than their actual local market. Once the realisation of the crash sets in, negative equity may be far closer than many people think.

Clive, Sussex, UK

Prices must fall - just look at the facts - prices are on very fancy multiples of earnings. The government has promised to push policy to build more - and surely it must be desparate for one success after all the failures in public spending. The changes next year to capital gains taper relief means that many buy to let investors of long standing have a chance to bail out of the market and still keep a good proportion of their gains, this will put more pressure on recent BTL investors who have entered the market at far higher rates and find that the rent does not cover the mortgage payments, while their capital gains are withering away. First time buyers with any sense will watch as prices fade and may still have difficulty in finding those very generous mortgages of 2006. It may take some time but I'm sure the price falls will gather momentum until houses are within normal ranges.

Diddly do, Liverpool,

The comment someone made that house prices were over valued in 2001 sums it all up.Nothing else to say for now.

Stephen Hulton, Eure, France

Is it already happening outside the SE and London? Some friends who bought 5 years ago recently had their property valued as they wanted to remortgage so they could pay for an extension and improvements. They bought for £220k and assumed, because of all the huff and bluster headlines - "property prices rise 20%, etc - that they were sitting on at least £340k (they assumed roughly 20% increase in value year on year). To their dismay, the property was valued at £250k. It's a tidy return, admittedly, and not a loss, but it's not anywhere near what they were expecting, and probably only just covers the interest they're paying. I suspect this is an attitude typical of many (new) home owners who have swallowed press articles reporting average national % increases hook, line, and sinker because it suits them to hear their house is worth. What they're not getting is that a UK average does not reflect local market conditions. The crash is coming, and my cash is ready and waiting to buy..

Lucy, Greater Manchester, UK

40-60% seems reasonable to me. All those who figure property is a one way bet need look no further than Japan. 20 years of falls and even with interest rates at 0% deflation was still rampant. Jackboy, London doesn't seem to understand that 120% loan to value on 8-10x earnings multiples with a fixed two year teaser rate before reset is exactly what sub-prime is. Or does he think the tax burden is somehow going to decrease. The government will service their appalling debt before they let you sort out yours.Buy to let landlords who are currently only making 4% yields will be in for a shock. New landlords will be able to offer cheaper rents because they have more manageable mortgages to service. People have got too used to the idea that houses create wealth. As a result UK savings rates have fallen and the equity in houses has been withdrawn to spend on cheap imported goods. Too many people have been living beyond their means on debt fueled spending spree. You can't eat or wear a house.

Edward, London,

at the end of the day it is down to the individual, and your view. A correction needed? probably. doom and gloom? short term or long term. Short term, i think investors may have missed the wave. Long term, well if you have a 20 year view, you are not really going to lose money. Pay rent till it crashes, and you are spending money for no reason. My parents bought a house 30 years ago for 9000 quid.

James, HK,

This is one of those "is the Pope a Catholic" type statements. It's not now a matter of "if" but a matter of "when".

Personally, having paid off my mortgage years ago I'm really looking forward to it. It will shatter Brown's image as the best ever Chancellor and without house price inflation the real economic growth figures will be finally revealed.

Scamp, Aberdeenshire,

It was obvious that UK house prices were going to fall,there isn't a single reason why they should rise in the next few years.The only reason that some people still believe they are going to rise is because they are afraid of facing up the blunt economic facts and are, effectively living in dreamland,not reality.If wage inflation is 2 %,no lets be optimistic,3% and houses are already 9 times earnings,interest rates are rising due to inlationary pressueres,banks are lending less money,who is going to pay for these price rises.Where is the money coming from?People just think that the next 5 years will be like the last.Economies go in cycles,not straight lines.

Stephen Hulton, Eure, France