Sellers should just wait and not be pressured to drop the sales price. Why sell ? You lived there happy for some time, just stay! The problem is not the price or affordability, but that the lenders dont give out enough mortgages. Once this problem is rectified, then there will be more buyer again

Kevin, Alton,

Howard Hughes, London

"So many gloating socialists...".

Actually, its the property bulls who are the socialists - always demanding tax breaks, subsidies and bailouts of banks that lent irresponsibly.

AA, New York,

So many gloating socialists... No one ever got poor by owning lots of property. So things revert to 2004-5 levels?! So what - we were all happy then with our house values. And if they don't? Happy days. I'm still buying. Only a fool refuses the chance to grab opportunities in a downturn.

Howard Hughes, London,

Craig, Bow.

"Renting a room out means the mortgage is being paid at almost the same rate I was paying rent and yet in my own property"

So, you are paying interest to the bank instead of rent to a landlord. You have to put up with a lodger. And it's not yours until paid for. Well done

Alex, Salisbury, UK

As an expat sitting on a lot of cash, I hope the market goes into freefall. I plan to buy when the market hits rock bottom.

The moral of this story is don't buy what you can't afford. Being greedy can be forgiven; being impatient cannot.

Quentin, Shanghai,

My hunch is: hold-your-horses until at least June '09 then take stock. And watch the stock market - when it starts to recover that's the time to start thinking of getting back in the housing market because that will mean people are feeling better about the future - and optimism is contagious.

Bertie Becker, London,

Craig,

As the crunch takes it's toll the level of work available to european migrants subsides. As the work dries up,so does their ability to send money home to family. They now are returning home and their properties are becoming vacant meaning theres plenty of stock out there = lower rents

Bruce, London,

Live now pay later has stood the test of time. Curious isn't it , all these 25 -30 Banking wiz kids assumed business was just sitting in front of a computer screen and pressing numbers. Thank God for Bill Gates who invented Microsoft and ensured the current generation would end up brainless.

Johny , Rennes, France

The actual average (mean and median) for house sales in a Leeds area has remained fairly constant since Jan07. However since Feb 08 the number of houses sold has reduced around 80%. Sellers will soon get desperate.

FTBuyers can still buy now but only a fool would pay asking price.

Steve, Leeds,

Opening the EU has brought hundreds of thousands into London for work, these numbers aren't dropping and they need somewhere to live.

Craig, Bow,

There will always be a market in London; with rental rates rising I'm buying. I couldn't afford to buy 6 months ago, now I can. Renting a room out means the mortgage is being paid at almost the same rate I was paying rent and yet in my own property! I'm buying a home, not an investment.

Craig, Bow,

I agree with Mike's comments re market and Tony. The governement, banks and too many powerful companies who have a vested interest in promoting high property values continually spin better than actual results on property prices. This in turn makes us get into debt, work harder, pay more tax.

vere, Camberley, UK

Maybe I am not reading correctly but asking prices were I live are now 15% down inside 6 months and there are still no buyers. I see 40% before buyers come back and I feel sorry for recent buyers with little equity or those that might need to remortgage. I think Tony left on cue!

Mike, UK,

"Households had a monthly income of about £538 a week" is one of my all-time Favourite Facts from an Economics Correspondent. Especially after being told that "The average family is now nearly £470 a week worse off than this time last year". Oh yes, facts is facts.

Gordon, London,

A 20% reduction in house prices is not nearly enough to tempt me back into the market. As a former estate agent I will wait until I see house prices bear some relation to earnings before buying again.

Lawrence, London, UK

Any first time buyer buying now will only be throwing his money away or entering into severe negative equity in next 2-3 years. The UK property boom is over. Now we will see the equivalent slump. By all measures property is at least 50% overvalued in the UK. Dont listen to self interest groups

Michael, Bishops Stortford,

a drop is always followed by a rise - only higher than before.

look at the charts for your area and property type on upmystreet.co.uk

2009 may turn out to be a surprise - mark my words!

lyn, norwich, uk

Having factored in a 20% fall in value, the rental yield on my BTL is looking pretty good. This tells me, with rising rents for good quality properties, that my capital is safe in the medium term, if not the short term. I don't intend to fall victim to an over correction, which is sure to happen.

Jock, Leeds, UK

The term 'recovery' is relative, what does it mean really? House prices stop dropping, stabilise & remain the same for years? They go up with inflation but no more? one sure thing, the days of sky high prices are gone. I hope no one is holding their breath for a return to another boom bubble.

Brian Roberts , Plymouth, Devon

This correction is far more rapid than last time because people are far better informed about prices because of the internet. The media continually predict doom and gloom that is tending to make the situation worse than it need be.They are also to blame for the preceding rapid rise by feeding greed.

john, milton keynes,

Susan, what ever you do don't buy now. It'll take at least another six months for the penny to drop in the more affluent areas but it surely will. Next year will see huge drops in prices - all the 'insiders' know this. I sold twelve months ago because I saw all this coming, just look at the graphs!

george, aylesbury,

I have seen a large house near me priced at £950000.in dec 07. But now it is up for 750000. So the high end is falling, but when they take the averge price figures, it only shows a 20% and the overall price of the average house in uk? so lots of room to control figures. And you can not sell!

oliver, colchester,

I say put up interest rates which will curb inflation, prop up the falling pound and speed up the inevitable fall in unrealistic house prices. Who knows by 2010 it could all be over with prices down to the 50% mark, allowing the economy to expand all over again. Short sharp shock

Bruce, London,

The housing price correction is going to be more severe than most realise, with credit being controlled by banks and questions being asked, evidence required and large deposits needed. The loan / income ratio is returning to more sensible levels and banks know prices will become affordable.

chris, christchurch, dorset

Why is this bad news? Those that bought could obviously afford to do so. It's only retirees and investors who need to sell now. Please don't buy now and fund somebody else's retirement - you'll be lucky to afford to retire yourself. Check nethouseprices and see how much profit is being demanded.

Richard, Guildford, Surrey

A year ago RICS said that house prices were about to rise by 40% in 5 years.I thought they were living on a different planet as they appear to be clueless regarding forcasting house prices.HBOS arn't much better either.

stephen hulton, eure, france

Unless you are buying with 50% reduction now, wait for better times. Nothing will induce me to buy, when I know that in two years I can get it for half price.

Julia, London

Julia Hough, Sarasota, United States

Prices in the South east of England have hold the same during the 10% fall of the last 6 months. Prices are going up again this month. I am not sure if I should buy now or wait bit more.

Susan, London,

Now oil is falling, swap rates are coming down, mortgage rates are reducing, the mood on banks is more positive: watch it all reverse - UK growth will dip but the rebound of property is already built in.

Andy G, London, UK

the current financial situation has been on the cards for at least two years and i think that the reason some people now find that they are in trouble is because of this present goverment and there spin doctors. anyone with a basic understanding of maths should have seen this coming .

steve, surrey, uk

20% off - you're having a laugh.. More like 45 - 50% off and prices won't be back to 2006/7 prices for another 10 years.. Great news for most people. Who actually benefits from high house prices ??? Only a very few.

Patricia, Teddington, England

Rising unemployment will cause more house repossessions. Job cuts in the public sector are also likely as company profits fall and less tax is payable. Interest rate hikes due to inflation will occur soon and food and energy bills keep rising. House prices will drop at least 40 per cent more.

John, London, UK

In a declining housing market Nu Labour's response to our bankrupt economy is to borrow more to support the housing market by helping the 1st time buyer. Encouraging poor people to buy a depreciating asset & lead to future negative equity & unaffordable mortgages is crazy & will = more & longer pain

Tony, LONDON, UK

The more worrying issue is that Labour's new service based economy was built on a flow of money borrowed from abroad. That flow is slowing by the day and will reverse. Is the entire economy a house of cards? House prices may just be a hint of things to come.

John, London,

'This will come as a further blow to households struggling with spiralling food and energy prices'

How can buying a much cheaper house be a blow to people short of money????

Seems like fantastic news: Cheaper houses to buy = more money in peoples pockets.

Gareth Jones, Dusseldorf, Germany

In early 2007 the IMF said property in the UK was 30% more than could be explained by economic factors; but that was when the economy was booming.
Now credit has completely dried up, and stagflation is just starting, that figure will be well below the mark.

JB, Seef, Bahrain

House prices are going to fall at their most rapid rate ever. There are many still in denial but the truth is property was as much as 50% overvalued.

The financial instruments that gave us cheap credit have failed and are now gone. Prices will plummet simply as no one can afford overvalued prices.

Gavin, London,

A year ago prices were forecast to rise, 6 months ago prices were forecast to hold, now prices are forecast to fall '20% in 2 years'. So what will the forecast be 6 months from now: 20% in 2009 alone? This correction appears to be more rapid than last time because prices have further to fall.

Paul, Coventry,