We want stable house prices rises in line with inflation Bozza. A House price crash now is not going to aid the fragile recovery so lets stop this self fulfilling prophecy.
Nothing anybody says is going to prevent house prices coming down either in an orderly fashion or rather faster.Prices will have to be rebased.Interest rates are not going to stay low for ever and no longer are mortgages with little or no deposit going to be available,so the inevitable will happen,prices will fall.When they have reached a reasonable level of affordability,I dare say lesser deposits than 25% will be demanded and hopefully,normal business can be resumed.This does not mean soaring prices,fuelled by artificially low interest rates....look where that got us....excessive borrowing,unaffordable debt,people mistakenly thinking they were rich,remortgaging to purchase goods and services that they couldn't truly afford.
Stable house prices rising in line with inflation are fine once a sensible base price has been established.