House prices have increased by over 110% in the past 5 years. When they fall 15.9% people turn hysterical! Just imagine the price of food increasing 110%, then the relief as prices drop back to their original level (normaility). House prices will return to normality. People are just in denial!

neil, oxford, uk

All those wanting Mugabenomic 'liquidity' sound like they are panicking about their debts! Sorry guys, why should the rest of us have our savings destroyed for your benefit?

Paul, Coventry,

Property has been over valued according to all metrics.

This is simply a reversion to the mean.

If you are highly geared I recommend you sell now to avoid high levels of stress.

alan smith, london, london

I agree with john, Milton Keynes interest rate cuts will have no effect whatsoever. We are on a downward spiral until the banks start lending again and this will NOT happen until liquidity is restored. I repeat Global quantitative easing is the only solution to REPLACE "vanished" money. Alternative?

Nik, Birmingham, UK

Contagion from housing market collapse now spreading throughout all sectors of economy. Liquidity must be restored immediately. inflation will set in but will erode Mortgages & debt, but will increase asset values i.e. property and pension funds. Interest rates then to be increased immediately.

John Wilson, Birmingham , UK

The UK housing market is in a state of panic that most commentators agree will result in a 40% fall in value from the peak values of 2007. The average house in the London has decreased by £150,000 and a loss of £300,000 is expected at the bottom of the market; interest rate cuts will have no effect

john, milton keynes,

What! No doom mongers on here gloating?
Perhaps they're all out, hunting for a property bargain.

Darren Ward, Manchester, UK

Disruption will continue even faster during 09 unless liquidity in Global banking system is restored by quantitative easing to buy up banks toxic assets & replace money which has "vanished" & before deflation takes hold. This restored liquidity will enable lending to resume & restore confidence.

Nik , Birmingham , UK