Surprisingly this isn't bad for most landlords! There has been BTL since the 1988 Housing Act with holding periods of 20yrs. Even with zero new BTLs, only 5%'ish net are selling this or any year. Plus rents have actually increased in my area since many now want to rent rather than buy!Higher yields!

Robin, Hassocks,

It hasn't sunk in yet, but the era of cheap credit is Dead, it rests in peace, it is no more, & won't return in the foreseeable future. The US credit party that fueled the property boom was a one-off. So all its effects will return to normal levels - they have no choice. Houses at trend = 50% fall?

Dean Hallett, Basingstoke, UK

House prices should never have been allowed to get out of control in the first place. As Victor from London says, we should have a capital gains tax or annual wealth tax like almost every other Country. It would be a far better way of controling prices than by lowering interest rates.

Pedro Tam, London, U.K.

What exactly is the point of the FSA?
All our problems now are caused because they did not apply any sensible lending rules. If there had been 3 times salary mortgages, people would still have disposable income.

The FSA is run by ex-high st bankers, who has profited out of the mess? Bank bosses!

Fred Sly, Elgin, Scotland

We sold our house late last year for over 6 times the highest annual salary I have ever earned. I couldn't believe that anyone earning enough to pay that much, would want to live in a house like that.

Fred Sly, Elgin, Scotland

The 'average couple' has not been able to afford the 'average property' in most regions for many years.

The bubble is bursting and, quite frankly, the market needs a downwards adjustment of 25% or more to become healthy enough to get sales volumes up.

Keith Hamshire, Hayle, UK

The public would be well advised not to listen to any of the self-serving predictions espoused by Hometrack. On that point I would also add estates agents, mortgage lenders, RICS and all of the other wasters that have made a killing in producing this bubble that is now just beginning to deflate.

Chris, Chipping Norton,

I am still buying- completely run down properties that aren't mortgageable in the first place. Serbian builders rip them apart in days (Brits take weeks!) then traditional commercial lending gets me my money back when they're done.

Prices are irrelevant if you know what you're doing.

Tim, Birmingham, UK

David - you talk rubbish. Bad news for everyone? I doubt that very much. Bad news for you - it seems so.
Labour are on the ropes because they peddled the lie that house price inflation wasn't being used to run the country - when it was. Simple as that. To everyone - DONT BUY.

John, Worthing, UK

The average property still costs £172000; assuming the FTB takes on a mortgage for this amount the total repayment over 30 years will be close to £500000 (yes half a million). Are bricks and mortar really worth this amount; me thinks not.

john, milton keynes,

It's not nervousness! If anything, buyers were overly calm and confident as they spent the money they didn't have to buy properties for £s they were never worth.
It is only a good thing if people don't buy beyond their hability to pay.

Rui, Lisbon, Portugal

Hometrack's preoccupation with 'buyers' is a red herring. Even if so called 'demand' was high banks are just not playing ball anymore in effect saving reckless borrowers from themselves. last slump took 6 years to play out so those hoping for a 'recovery' anytime soon will be disappointed..

ian hall, Croydon, England

There is much further to go. I believe that many Lenders are capitalising debt where possible to hide true arrears. The tide of repossessions will put pressure and costs on Councils to put those evicted into B&B.

V Cooper, Yeovil, UK

Declining house prices are good for everybody except those at the very top of the market and second home owners including
landlords. First time buyers obviously benefit and others can trade-up at less absolute cost. Yes, owners don't like declining prices, but they need educating.

Brian , Oldham, Lancs

i am a long tine property devloper and investor (BTL) in UK. in general i agree with many sentiments here. house price are down 15-20% now( and this will be healthy long term), sales are a small % of a year ago. however much of our perception of weath and well being relates to our largest asset!

simon baston, vancouver,

Andy Hawk you say 'supply and demand is a myth'. That is absolute rubbish

House prices are determined by supply and demand the large factors influencing prices at the moment are the ability to borrow and concerns over house prices in the future.

Which guess what influences the demand side

rob, london,

If capital gains tax was applied to all property sales the market would not have run away with itself, as it so obviously has done. Correction, correction, correction. Do not even think of buying a property for at least 18 months.

Victor, London, UK.

David in London, you are correct in that *falling* prices discourage people from trading up, however when prices have bottomed out at Y2K levels, as they will within the next five years or so, then plenty of people will be looking to trade up, most of all growing families stuck in FTB properties.

Paul, Coventry,

Whooppee. let prices fall. just sold my place and left the country.Just sitting on the cash (its invested) waiting.I see a real bargain along the way here and a few quid left in the bin. Happy days. I predict a 50% fall.! Who knows I could buy my own house for less than i paid 5 years ago :-)

tony, Limasssol, Cyprus

Quite amusing to see a couple of commentators here still trying to convince themselves that their investment is more or less secure. NO CHANCE! The whole property bubble is now shown for what it is - A BUBBLE. Expect falls of at least 50% in the next 3 years, after that, who knows how far down.

Clive, Chichester, UK

As a long time landlord,parent, believer in an equitable society and ex (successful!) trader I'm fine with prices falling-as are many owners. Prices are 10% off the highs with 10% to go IMHO. However, it's interesting to view the desires of market participants here-that should tell FTB's something!

Robin, Hassocks,

Nervous First time Buyers????? What Poppycock! The entire country sees that property values are falling and will continue to do so for at least 2 more years, with 30% drop, which is still not enough to correct the over inflated prices.

smell.the.coffee, London, UK

Finally many of the Home owners who have been in Denial for the last 6 months have faced up to the obvious ... Property prices are declining & will most likely be for the next 12 months ... at least

Andy cooper, Oxford, UK

Marriage splits, increases in family size, sick of paying rising rent, long-term investors = a slight dip in prices 5-7% but no more as the UK population will insist on zero stagnation of their sole income outside of employment.
Most do not invest in any other way!!

Jules, Duston, Northants

It's quite ridiculous that people believed house prices, stocks etc. were never going to decline in value ever again?

Kv, London,

Falling Prices = Great News...how much longer could the economic madness of spiralling prices have continued? We would all be living in million pound houses if it had.

Private Banker - Birmingham, Birmingham, UK

I dont see any 'nervous FTBs' here. Like me they have their deposit and are waiting for the inevitable 30-35% discount coming in the next 2-3 years.

Make the most of your deposit. Put it in government backed index linked saving certificates - tax-free and interest increases with inflation!

clint flick, liverpool,

House prices probably need to go back to 2005 levels which means most buyers/investors have made more than a tidy profit - really all the nonsense is over done. The stock market is still below its 2000 peak. 2008-2009 will be the year of housing bargains that 30% drop is minimal over the longer term

andrew moore, brighton,

Most peoples' woes will only be amplified by the fact that second homes are being burnt in the popular Mediterranean areas, particularly made worse with the euro exchange rates and interest rates. Indeed, holiday homes and businesses in the sunny eurozone belt will bebadly hit because travel costs

Goldfinger, Gloucester, UK

Why would anyone in their right mind pay £173K for a brick box that costs less than £50K to build? Until that balance is restored no sane banker will lend money with "brick boxes" as collateral.
In future years, this will be known as "The Housing Mania of 2005-6".

pedro, Stratford,

"Maria-Smithers-Jones"
nice try!
I have tried to invite a few home owners friends for dinner but I have many no show. They are all at home and depressed for their fall in "value". I have started hosting "renters only" parties at my rented mansion in Chelsea

Geoff Ruud-St-John, Chelsea,

I wish these articles would stop saying "Getting tougher for FTB's", i have wanted to buy for a few years now and right now i am over the moon, The only people that are finding falling property prices tough are the idiots that borrowed on the back of rising property prices, 35% falls plus are coming

charlie, saffron walden,

Buyers Strike?
We have a good deposit, earnings to loan ratio money for our costs, excellent credit record proffesional . so why no mortgage....Paranoid lenders I think.Will all those directors hand back bonuses for gaining market share by irresponsible lending while the rest of us suffer.

Thornton.B, Swansea, wales

We are going to be reading these headlines for the next 4-5 years, until the average house price dips below £100k.
See the Nationwide graph at housepricecrash to see how houses dip 30% below the long term trend before rising. The lifecycle of bubble is the most telling though.

Ed, Harrogate, Yorkshire

End of the road for the housing market! Spare a tear for the Estate Agents and alike!

George, Richmond,

Estate Agents could make this all a lot more manageable if they stopped pricing property at pre credit crunch prices. There are properties going on the market near me at prices that I'm sure are 10% higher than they would have been if they had gone on the market a year ago. Estate Agents are nuts.

Hilary, Southall,

Every 10% fall = 1 year's take home average salary. Wait 2 years and you could save 5 years' pay. Only an idiot would buy now. All of the EAs in my area might as well stay in bed all day. They will soon realise that only by talking sense to sellers will they save their livelihoods.

Clint, Brighton, UK

The longer sellers hold out the greater downward pressure on prices will become. I believe that property prices will return to the long term level of affordability within the next 2 to 3 years. Anyone other than those down-sizing will be out of pocket if they buy a property this year or next!

Costas, Cyprus,

Hometrack are showing they are a joke, talking about buyers strike and nerves!! What a load of utter rubbish, like the first comment said, affordability is the issue & the only way this will be resolved is with lower prices, trouble is they need to be around 30% lower and crashes always overshoot!!

Richard, Ipswich,

If people are so happy with falling house prices why is Labour so unpopular? Property is most voters major asset and if they lose on it they are unhappy. Even those who want to trade up are unhappy as the house they buy could further lose value. Substantial falls are bad news for everyone ultimately

David, London,

It"s so difficult for the younger generation to purchase property
in todays super inflated prices when the house prices fall 50%
you will then see a pick up in the housing market but not until you see a true correction of at least a 50%drop in the price of homes old and new build

john morris, bishops stortford, england

Nervous buyers hold back as house prices fall again, The fall is not due to the ''Nervous'' Buyers but the Nervous sellers need or wish to sell into a cash straped market

Michael Rudd, Barking, UK

I have to say that buyer "nervousness" appears to be completely rational. Who wants to make a geared purchase of a depreciating asset?

russ, valletta, Malta

Who would buy in an obviously falling market?, it would be irrational unless "forced". It is everyone's interest to get this crash done asap, so that we can get on with the recovery phase. The prospect of a long drawn out correction will cast a nery long shaddow into the future.
Bring it on.

Mike , Tauranga, New Zealand

I resent the headline of this article, if you’re going to blame the oncoming Housing Crash on First Time Buyers or ever BTL investors the heading should read “Better informed buyers hold back the market”.

Andy Hawk, Liverpool, UK

We are going to see house price falls of no were less than 25pct. Anyone who disputes this… Please open your eyes look are N.Ireland… look at the USA… Look at Japan. Why do you think that the UK is any different?

Please don’t say “Supply and Demand”. Wake up... it’s a Myth.

Andy Hawk, Liverpool, UK

People are nervous?-No, they cannot borrow enough money now. Less than half in fact.
Why keep quoting the CML figure of 7% drop. These are the idiots who predicted a 1% RISE this year in Oct 2007.
'Prices will edge down', ha ha, by 50%
'9.8 weeks to sell', what, houses are selling?-not.

Np, Cornwall, UK (at the moment)

We constantly press our children to learn from their mistakes and yet as adults we let history repeat itself over and over again. I think if you look back at the housing market and the last two recessions in the 80s and 90s - you will find that this is termed as a "trend".

Jason, Hemel Hempstead,

This government encouraged nothing. People, with a sense of greed, produced this inflation in house prices. It is all the British can talk about - oh how much my house is worth. Now, as Maria recognises, all they can talk about is how much it has fallen. How boring. Get a life!

Richard, Plymouth,

This was all so entirely predictable. The so-called "housing market" is nothing but a massive pyramid selling scam fuelled by LIAR LOANS and Predatory Lending. It really is that simple.

Paula, Cirencester, UK

Buyers, especially first time buyers, should collectively boycott the property market. Homes are meant to be lived in. Low house prices are good for society. Houses are meant to become homes for families, not ATM machines.

Kara Swart, London, UK

I recently invited my friends around to dinner and we had really lovely evening discussing whose house has fallen most in value, it is all so exciting for us. We had a great night in.

Maria Smithers-Jones, London , UK

Why is this manipulation being allowed to happen? People were encouraged ( irresponsibly) by this Government to buy more than one property instead of investing in pensions. They are now struggling with high mortgages and falling prices. How is this helping anyone? This is an attempt at control again

judy, Liverpool, England

Why buy if you don't have to?You could earn a years salary by waiting 12 months,especially with all that interest you would have to pay.You only pay rent when your renting,the interest is for the lifetime of the mortgage.

stephen hulton, eure, france

Its not nerves, not a buyers strike, its AFFORDABILITY that is the issue for FTB.
Investment bankers are responsible by relaxing lending criteria for generating CDO volumes.
If the FSA was more than light touch regulation property values would not have skyrocketed.

J A Joe, London,