In the last crash, the market was inflated by Nigel Lawson abolishing dual tax relief, giving 6 months to beat the cut-off, the economic slowdown tipped an unstable market over the edge. This time the market has not been pushed upwards to the same degree. The market was flat in 2005, rose in 2006 and for the first half 2007. Unless the data changes and unemployment goes up, lots, people may sit tight, reducing supply and taking some of the downward pressure out of the market.

A big risk is increased borrowing costs, rapid economic decline etc. Obviously if the banks do not free up liquidity then the former might happen, and if we all stay at home and don't spend, the latter.

Some areas will do better than others, quality will out. Punters who use the market as an excuse for a smug dig at others (Their shoddy spelling, good grief!) really do forget the human element of any such situation, let us hope the market has some considerable resilience.

SJM, Romford, UK

The chickens are coming home to roost at last!. First time buyers are already priced out of the market, and with deposits of up to 25% required before a mortgage is granted house prices will continue to drop. Our young graduates, who, 15 years ago would have been expected to move onto the property ladder are now weighed down by debt which will take them years to clear. This alone explains why house prices in Scotland are not tumbling, as in the UK, since Scottish students graduate free of debt.
The bubble will not just burst. It will implode!

sophie, london,

Doom and gloom. 0.2% fall. 93.3% against 93.5% . Wow these are big scary numbers, maybe its time to sell up and put 12k a year into a brave landlords pocket insted, or should I wait and see what next weeks headline is. Will it be Nationwide saying prices up in February or BBC predict a crash or could it be land registry saying no change. All I can do is pray that the world doest stop turning. NUMBERS, NUMBERS, NUMBERS! Who do I listen to?? Who cares! They make great headlines!!!

Basil Bell, Bath ,

How does Mr Donnell make the logic leap from noting that there are less buyers for the time of year and more property available, to saying that it is "too soon" to talk of recovery????

I would have thought that that combination suggests further falls in the market are more likely.

Alex Ritchie, Salisbury, UK

And surely the headline should read "House price fall continues because of small rise in buyers"?

Alex Ritchie, Salisbury, UK

There are three facts that might undermine claims of a housing shortage in the UK:
1) Rents have not kept pace with house price inflation - it is therefore cheaper to rent than it is to buy a like for like property (what economists call imputed rents).

2) All the major house builders have land-banks with the equivalent of 4-5 years supply of plots with permissions granted - the Royal Town Planning Institute also reported last year that there were a similar number of additional plots already allocated in local area plans.

3) People confuse the "I want" type of demand with the "I can afford" type of demand - the latter is the only demand that matters in any market (I want a Bentley - but I can only afford something a little less flashy).

People are paying more for their housing costs out of disposable income than at any time since the last crash - this means limited affordability means limited demand, means big back log of property, means stagnant prices.

Father Ignatius Brown, London, UK

the rise of properties was artificial. Fake prices, mortgages, debts, all a big mess.
The system was feeding itself and now there's no money.
So, the "value" of a property desappears!
Ridicolous!!!
wake up, Brits, your "richness" doesn't really exist!

riccardo, brussels,

We sold our property 12 months ago & have been in a rented luxury appartment ever since , with the state of the globel ecconomy we have no intention of dipping our toes into the property market , nobody in their right minds should extend themselves in this over inflated market,when comentators and economists talk about financial meltdown ,globel recession, high inflation,job cuts,house repossesions,and so on ! sit on your hands invest your cash in the Northern Rocks ( Darlings garranteed bond) silver saver account sit back and watch the action

keith, exeter, uk

Let's get the description of the numbers right. Hometrack provide weighted average estimated prices at which estate agents believe sales might actually take place for "standard" properties and there is no seasonal adjustment.

Buyers are only paying 93.3% of asking price on average (I doubt whether more than a tiny percentage are paying asking price, let alone above). This suggests that asking prices are £186,923 on average.

Mark, Woking,

The sooner that the public accept that the last few years of growth is unsustainable the better. Home owners seem to be happy fooling themselves that high prices are a good thing.
Why is it seen as progression to burden yourself with massive debt to purchase a property that was half the value 5 years ago? Is the property the same? I guess yes, so why is it acceptable to pay the inflated price? Is it because that the property will continue to rise at this rate? Surely this depends on the affordability of the mortgage? Unless wages increase at a similar rate or goods and services suddenly become very cheap this is unlikely to happen.

In addition the UK's reliance on credit suggests that Joe Public doesn't have spare cash to haemorage on unneccessary costs, if they had the money why would they be borrowing it? Which is a concern as the cost of living is going up - utilities, fuel, bread, milk

Your house is only worth as much as a buyer is willing / able to pay for it

Kev, UK,