Increase stamp duty to 8% (it is in France) and kill speculation once and for all - but flat rate and no escalators.
<br/>The next debacle is going to be endowments not paying off at maturity - by law, restrict all combined debt to 30% income individuals and families.
<br/>To get back to sanity.

graham topp, toulouse, france

Yes Glenn, this is a very positive story and there are going to be many many more in the coming months!
And no, I'll feel no remorse with the housing market on it's knees, taking my pick of realistically priced homes from the greedy and the ignorant.
I've suffered. Now it's their turn.

Yan, Middlesbrough,

Wasn't it Northern Ireland house prices that increased by over 400%, these kept the UK house price averages up. An 18.5% drop reported in NI over the last 3 months and accelerating now means that the UK house price average drops will start accelerating downwards. I expect a 20% drop this year.

Amanda, Lancaster, Lancashire

Glenn (Realist) , things will never return to the level of the last decade, the days of cheap money are gone. Unless you have a 25%+ deposit and proof of income you wont get a mortgage. Anyone with negative equity will be stuck in their property until inflation eventually wipes this out.

Jake, Stoke, UK

We've waited ten years for this price 'correction' - funny how everyone is talking 'correction' when they were saying what a safe bet housing was last year! Sorry for those who lose out, but I had negative equity in 90s and higher mortgage than rent. Not exactly distant past. Warnings were there.

Kate, Twickenham,

I bought my first houses in the 1960s - huge Victorian terraces in Leeds for £1,000 to £1,500 each - servants' staircases, fabulous marble fireplaces, 12' ceilings. The deeds showed they cost 3.5 to 6k in the 1930s. The estate agents explained that they got worth less all the time :-( Reality check!

david fairburn, Leeds, UK

Mike, London

Evidence for your absurd claim that prices will rise?

You are using the "I want = 'demand' " argument, which is utterly wrong. I want a Ferrari, but I won't buy one due to lack of money.

FTBs want a house? Max 3.5x salary => price falls.

Down another 40% at least from here.

Jon Cooper, herts, uk,

On line polls also indicate that around 80% are in favour of price falls.

If you have recently bought into the bubble with your first home you have my sympathies, however if you are a property investor of any kind you deserve whatever you get...if you didnt understand the risk thats your problem

A Harris, Kettering, UK

First time buyers and those wanting to trade up should do their best to do so as soon as possible. There are reported to be 230,000 per annum more households being created over the next 12 years and currently only 140,000 more dwellings being built. Even short term prices are going to head upwards

Mike, london, england

Denialists out in force today i see! N. Ireland is a tiny part of the total. 1st time buyers will have plenty of choice don't worry about that - think of all those BTL flats being panic-sold.

Glenn - many will have to sell or be repossessed. And yes, most people (80%+) think it's is good news.

Jon Cooper, Herts, UK,

Chris, I bet you wished you'd held onto your house you sold in the 90's at least until 2007 eh?

Glenn, london,

In response to Glenn{unlealist], I sold my house in London for 60% of what I paid for it in early 90s, it did not matter as all other house prices had come down

Chris, Harwich, Essex

The price falls were not engineered by the banks - they are writing off billions because of it - but the price increase was indeed a consequence of their lending practices and tight margins, which were only possible because they made money from selling the mortgage debt to investors.

Laurence, London,

Fantastic news. Sad for those who bought at the peak, but no-one 'made' them buy; they should have worked out the maths and assessed if they could afford it. House prices cannot long remain out of kilter with average earnings.; it was obvious falls were coming.

Caroline, London, England

Mr Realist,
Auctions will go at 50% of last years value and there will be sellers who had massive gains that will disappear but will sell anyway because the house they are moving too has also dropped massively from '07s inflated value.

Banks will lend again when losses are less likely.

Howard, london,

Chris, Banbury, typical naiive comment. Just what do you think "young FTBs" will buy? Those stuck in negative equity can't sell. Suppose you could live in a city centre box in Leeds.

phil, london,

John from manchester, Northern Ireland is not Britain! and the report quotes British figures

Martin, Newcastle,

Chris, for those of you that think house prices need to/will drop to 40%-50% of the '07 peak values keep dreaming, do you honestly think people will sell a house for 50% of what they bought it for? sorry to dissapoint you but when the banks start lending again, and they will, things will level out

Glenn (realist), London,

Chris, there is no 'sweet joy' for young first time buyers. They can't get a loan and have to save up to 25% of the cost of the house before they can get on the property ladder.

I think you've forgotten that the price fall was engineered by the banks, not by weak consumer demand.

Ian Tinn, Slough, England

"Halifax pointed out in an attempt to put the current gloom in perspective that the average house price in July was £44,980 higher than in July 2003, and £104,888 or 145% higher than a decade ago. "
This should add to the current gloom, as it shows the bubble still has a long way left to deflate.

Ian, Gloucester,

Great news!!

roger, london,

So Frank you think it's good news that families and anyone else who has spent years paying their mortgage are losing out in this downturn, as well as innocent employees of construction companies losing their jobs......nice.....anyone else think this is a positive story?

Glenn, London,

So then, 2 years of gains wiped out, another 25%ish expected. The question that will begin to be asked is, in light of the fact that this is a correction of a severe over-shoot, is how far prices are likely to under-shoot on the way down? Indeed, when will they hit rock bottom?

Le Tundoir, Liverpool, England!

Still a long way to go before historic loan to income multiples return.

I predict a average low of £120k. In the meantime while the likes of the NFH get a platform in the tabloids there will be a trickle of foolish buyers keeping at least a few estate agents in business.

A Harris, Kettering, UK

Good news again. Check out more house price falls on Property Bee.

Frank, London,

It might be "misery" for the housing market (builders, banks and all those that make a living out of housing) but it is sweet joy for young first time buyers. There is a long way to fall yet and long way it continue.

Chris, Banbury,

Interesting point from the HBOS Report : The average mortgage rate paid by all borrowers - i.e. the average rate on outstanding mortgage loans - fell by 21 basis points during the first half of 2008 from 5.97% in December 2007 to 5.76% in June 2008. (Source: Bank of England)

matt, London, UK

Misleading report yet again

What about the fact that prices fell 15% in Northern Ireland in the last quarter alone which distorts all the other figures

john, manchester,