The value of your house has only reduced if you have to sell. So, unless you have to sell, just wait. If you need more space, consider getting planning permission for an extension. In the end, house prices will continue rising - cost of building is increasing and available land reducing.

Peter, Guildford,

I just sold a one bedrom flat in Brighton - we did it up and last year the agents said it was worth 200K. To sell it we slashed the price to 150k - then the buyer was gazumped for 160K! - I bought it for 44k in 2003 - So I took 20% less than the crazy peak prices - am I sad - not really

Andrew, brighton,

Mike, Bristol. Prices are set at the margins - in a slump by forced sales and BTL investors bailing out. Already in my street a property bought for 220k in 2005 has sold at auction for 150k. A 35% fall and the crash has hardly started yet.

Graham, Oxford, UK

Warn the public? Has anyone heard the warning about "irrational exuberance" before? Did not seem to work!

Estate agents & those with a vested interest keep telling you get in now before its too late. Have you ever heard anyone say -well it could fall. Of course not they just want the fees

Jason Pearson, Toronto, Canada

I agree with Mike Bristol, a few months ago the issue of not enough supply to meet future demand was being constantly warned about. This still exsists. With builders currently scaling down new developments supply shortage will surely increase pushing up prices once the credit crunch is over.

Sulinder Singh, Iver Heath,

Most people can see wherever they live, that house prices became glouriousley overvalued. Judging by recent monthly house price surveys the downward correction is now well under way. What is the point in buying property today when you can be paying 5-10% less in twelve months time.

John, North Wales,

If I knew the future, I wouldn't waste my money on property speculation, I'd just do the lottery.

To all those who claim to know one way or the other........get real, you know nothing.......what will be, will be.

David, Paris, France

Dream on Mike Bristol. After the largest credit expansion in history there is no quick fix.. The days of cheap credit and high loan/value ratios are over. Affordability is taking a major hit and house prices will eventually have to reflect this. Expect a 50% drop over 5 years. It's unavoidable

Jonny, Huntsville, USA

Well said, Mike Bristol, cloud cuckoo is another word I would use. BTL investors will be sweeping in to take up any flak. Those with enough equity i n their portfolios, and there are hundreds will have a field day. With continued upward rental increases its win win win in alot of cases.

Nick Duncan, Marbella, Spain

The Government, the FSA and The Bank of England should have warned the public of the dangers of excessively high house price inflation seen over recent years. They should also have told the Banks and Building Socities to curb their irresponsible lending. We are now living with the consequences.

Brian Hill, Bristol,

Builders are overloaded with property/ land bought at the top w/o long term finance agreed. Banks need capital and don't want more bad loans on their books. A) Builders are liquidated! or B) Banks arrange finance in return for builders selling 30-40%+ of their holdings. Ugly either way IMHO

Ian, Madison, USA

There never was a housing shortage, it was just another untruth perpetuated by nulabour's propoganda machine

David H, London,

Remember that a lot of the figures are worked out on completed matters and transactions are at present taking about 4 months to go through. As a property lawyer, if I look at new matters taken on in the last few months (that have actually sold, matters are extremely bad for those employed in housin

jackie, portsmouth, england

Anyone holding out for a 40 to 50% fall in price is living in fantasy land. There is no shortage of demand, only the shortage of cheap mortgages. Most new builds have been mothballed so demand will be even higher once the credit crunch eases. Any home owner with a brain is going to sit it out.

Mike, Bristol,

At last people are realising that this will be the UK housing market crash to end all crashes. If prices can rise 180% over a decade they can certainly fall 50% or more after the cheap credit is withdrawn and inflation and unemployment hit home. UK shafted by Brown, now we get a DEPRESSION.

chris, brighton,

prices will continue to fall in the housing market until prices get back to a realistic level, ie 40 to 50% lower than what they are now. The last decade has never happened before in human history and now we are going to pay for it in waves. Hyperinflation depression by end of 2010.

Steve, Edgware, UK

I agree Christopher, we are our worst enemy in the UK.

If you read the same things day in day out, then you start to believe it. I'm not saying that things are rosy, far from it, but it's not that bad.

nick, grantham,

Can anyone please explain how we have a housing shortage, when even last year - before the crash - there were seven sellers for every buyer and the figure is now quoted as 15 to 1.
I am confused!

Eddie Hooper, Gravesend, England

Great - the media stoking up fear in the country yet again!

Christopher Purdy, Luxembourg,

I would have thought that now is the time for local Councils to build houses which can be rented out . Many house builders have very little to do and will be only too pleased to take on any work . The government should put its money where its mouth is and make cheap loans available to councils.

Martin, London, GB

If i want to make money in the Resident housing market, I would wait for another 18months. Rightnow, energy is the place to be

Lin, London,

So much for the housing shortage. What a load of nonsense. People were buying houses because they were going up in value. Now they are falling no one wants one. Guess what, oil is the new property. Listen to all the rubbish being spoken about shortages there too.

Simon, London, UK

Another hole in the Treasury coffers!

Michael, London,