Many do not realise that current repossesion sales eminate from proceedings commenced almost 1 year ago when the economy seemed to be in good shape.
With the current situation there is going to be a massive increase in repossessions. The Courts have been lenient in many instances which merely prolongs the inevitable.
Once evicted it is the Local Authority who must house them. This is another massive cost which falls upon the community. The whole thing is an absolute disaster . Hopefully we will soon join the Euro as there is little stability in the Pound Sterling.

Vernon Cooper, Yeovil, United Kingdom

only 7%?
You must be joking!

riccardo, brussels,

Affordability hit dangerous levels before end-2006. That had nothing to do with the crunch. People seem to view the high multiples and low deposits as normal...that was a mis-pricing of risk.
The implication of current events is therefore that we are just returning to reality i.e. there is not actually anything to fix i.e. now we are pricing risk properly. Our vulnerability at rates of 5.75 v 5.25% is highlights the problem….
NR/ subprime in the US and here are symptoms of the problem, and not the problem, as many think. Like any pyramid scheme the credit/ asset markets only work if there is an unrealistic assumption about being able to carry on to infinity.
If mortgage payments and income multiples are at record levels and were too high in 2006, then how come the same VIs carry on saying FTBs are returning as "affordability is improving"?
No access to funds and over pricing of houses means no it is not. An interest rate cut will not help.

Raj, London,

Correction means to put right. A correction is GOOD. The use of this word is an admission that prices are too high. The boom over the last few years has caused considerable damage to our economy. The gullible public has lapped up all this tosh about the huge wealth we have in our houses and borrowed like crazy, while FTBs, caught up in the BTL frenzy, scared that it could be their last chance to buy have borrow huge sums.

Houses cost half the price in Germany and there is no question who is wealthier. The UK housing boom has made a few individuals rich but will ruin the lives of many. Mr not-so-prudent Brown claimed to have orchestrated an economic success story but in reality he created an economic time bomb.

Liam M, Newcastle, Tyne and Wear

Jason, Bournemouth. You forgot to mention that this only works if you own a property outright (ie no mortgage). A simple look at interest rates over the past 20 years will show that these have ranged from under 4% to close to 15%. How many people could cope if their current mortgage payments trippled? 20 years is a long time in economic terms and lots can happen. You might as well advise people to see the rollercoaster ride through to the end, even though they will be required at times to unhook their safety harness whilst upside down. Some would make it, but many more would fall out. For many people, selling now before the market completely tumbles will make very good sense.

George, Brighton, UK

There is a swing towards the probability that house prices will fall but we have to live somewhere and in the long term of course unlike shares your house can't ever become worthless.

More important at the moment is the energy and food inflation reaching levels before unknown. Land of course will increase in price as farmers, who are now raking in the cash due to food shortages and high prices continue begin to snap up more land.

Don't get confused by the so called money experts just use your own simple logic and you won't go far wrong.

Trev Moore

Mr Trevor N Moore, GOSPORT, UK/Hants

If you have something to sell, say something important like a house, then you can expect to wait for a few months. If in that time prices continue to fall, then any potential buyer can see that they would save themselves perhaps thousands of pounds just by waiting. Thay may say to themselves... 'When will this end ? And so the first time buyer who props the whole market up is quite likely to sit on his deposit for quite a long time. Eventualy this might even reach the point, like all markets, where house prices become TOO LOW

David Nammory, Liverpool,

what a load of codswallop

property moves in a cycle and we are moving into or have already entered a period of the market self adjusting itself after a long period of rising prices

as someone correctly said, prices cannot ALWAYS go up

once its corrected itself (and yes that could mean a drop of even more than quoted) it will go flat for a period until prices start to rise again as the world around us gets more expensive due to inflation. (i remember crisps at 10p a packet in the 80's, and they're now what? 60p or more?)

some say this has nothing to do with house prices, and directly, maybe not. but what about the materials to build new houses increasing in price - this HAS to increase new build house prices over time and then it WILL filter down to 2nd hand stock

Then back to todays situation, completing the cycle

it really isn't rocket science

just hang on for the ride and you won't be disappointed

get off and you'll be gutted in 1/10/20/30 however many years

Jason, Bournemouth,

Reply to Chetas - your comments do not reflect any of my peer's positions! Our mortgage repayments on our humble 2 bed terrace cost 30% of our net income on an interest-only basis. We bought at the lowest end of the market as first time buyers with a good deposit. We very rarely go out to eat, in common with the majority of our friends/neighbours. We held off buying for a year only to see prices continue to rise. If the market does crash then it will affect our future plans for starting a family and getting married so I have my fingers and toes crossed that prices remain stable.

Gemma Robinson, Evesham , Worcestershire, UK

Mortgage payments for most people dont even make up 20/30% of income.

It can go two ways. either massive drop or mortgages taking upto 50% or more of home pay. ( In London, I reckon flats will suffer the most, rather then 1million + property)

I personally think people will realise that wasting money on eating out 5 times a week, catching 5 min taxi rides that cost £20 etecetra as a waste and use that money to buy the house they always wanted...

chetas patel, croydon, surrey

Anyone who bought a house in the last year only has themselves to blame, a downturn in housing prices has been inevitable for a couple of years now to anyone with a modicum of financial sense understanding affordability. To all those in in this situation, batten down the hatches and ride it out, in ten years time house prices will be higer then they are today. Best of luck to you.

darren, london,

I'm always amazed with the certainty of the predicted percentage falls presented in headlines of this type. No question that prices are on the way down, but why only 7%? No one predicted accurately how high prices would rise, so why pretend to know far they will fall. I've taken to automatically adding a zero to any figure presented by vested interests trying to calm a crashing market. Down 70% (over 5 years) sounds feasible.

Clive, Chichester, UK

7% that's nothing. Lets hope it reaches 30% then the BTL scum will really bay the price for there anti-social behaviour.

Paul Angove, Leeds,

What goes around comes around... Over the last 6-7 years who hasn't been into a beer garden only to see the great and the good tanned masses talking about their latest material possessions cost them and how it didn't matter because their house is making them twice as much.

Giving it the Big 'Un, these people thought they were morally good because they were consuming at ridiculous levels and oblivious to value they believed they were not liable because "house prices always rise". Where was or has the absolute real value been put into our economy over the past 30 years? Meaningless jobs for a meaningless civilization and our governments, hands tied by political expediency and crass naivety have either sat by or actively encouraged our lack of enterprise and work ethic whilst the East have taken over what we have failed to do.

Be prepared to work for the Chinese and a much reduced standard of living - no more fancy holidays, no more convertibles, no more Largin' - wakey, wakey.

Chairman Mao, Shanghi, China

This was always going to happen, prices just can't keep going up; the increases have been incredible and have continued rising at these levels over a ten year period The fall could be very sharp indeed given the dramatic and unprecedented rise in prices and as many buy-to-let players sell to take the profit in the market. Meanwhile, who is going to consider buying a house in this market?

José, madrid,

What! No rebuttal from the Halifax, claiming 10% price increases in January?

Stuart, sheffield, UK

It is now becoming clear that all those 'experts' who have been saying that everything is alright because there is a shortage of supply are either fools or liars or both. It would have been hilarious, were it not for the fact that a multitude of people will now face financial ruin because they relied on the words of these charlatans who care for nothing but their own pockets.

anthony, london, england

Prices tripled in ten years and no one bothered. Now because we are faced with a slight readjustment, there is panic in the streets. Am I the only one thinking that the estate agents are behind this?

Hamad Lone, London, England

lol.

alan, london, dc