The US, Spanish and other housing markets are fundamentally different from the UK thanks to the 1947 Planning Act. In other markets when prices rise, fuelled by demand, the supply of houses increases so that in time prices continue to reflect their construction cost. Historically in the UK also houses used to reflect construction cost and until about 10 years ago average prices had seldom been more than 120% of the actual cost of building and were often considerably lower. Today because of Government imposed NIMBY fuelled draconian restrictions on building the average house price is some 250% of construction cost. So long as we insist on keeping nearly 90% of Britain non-urbanised there is little prospect of better value higher quality housing becoming available. One day however the younger generations and growing families may rebel and refuse to pay twice the price neccessary and demand instead the high quality far more spacious houses that they could so easily have.

David Cardale, Swindon,

The crash has already started, less is selling at auctions, builders are pulling back on buying, intelligent people are pulling back too, only the idiots are buying now and over the past year, it is the idiots and greedy agents who fuel rises.

Many prices are dropping around Liverpool and the NW England, there is also a huge amount of unsold properties. Therefore it is turning into a buyers market with signs the crash has started. The BIG question is how hard a crash will it be? Rates are still too low and the signs indicate they need to go to at least 6.25% to stem inflation unless of course the bank pussyfoot about too long in which case 8 or 9% would be in order.

Take my word for it, I have been investing in property for years and the signs are the same as the last crashes...IT HAS STARTED...

Karl T, Chester, Cheshire

It seems from above that there are many who say that they are very glad that it looks as if the housing market is going to implode. I suppose it is only one side of opinion but I can see that they may be heartily sick and tired of the spin and lies involved in the Estate Agency business and the chattering about 'paper' property values whilst the cultural heritage of the country (artistic and scientific) goes down the pan.

What do I think? well if a few London people with their 50%over valued property receive a bit of a shock then no problem. However it would be mean if the rest of the country suffered as they produce the wealth from which London feeds parasitically. So in that respect I have a little sympathy with Dave of Worthing - still I suppose those who are repossessed can become the tenants of Buy to Let Landlords that many espouse to be!

Pete Balchin , Bristol, uk

is the UK heading for a real estate crash. Events overseas shed a light on this vexed question. The spanish property buble has imploded and houses on the Costa Del Sol are currently 10% cheaper than last year. the Us sub-prime real estate marek as gone down the tube and last week, the Federal Reserve Chairman accepted the disease had spread to the prime \ expensive US housing market. We surmised this in Feb \ March 2007 but he remained in denial. The Irish real estate market is expected to implode late this year or early next year. Its hard to see how the UK can avoid contagion of the real estate crashing virus. UK Estate agents argue that the UK is protected because overseas investors are still keen to buy UK properties. But if an overseas investor can buy cheaper in the US \ Spain\ Ireland etc, why would he buy UK properties. The UK real estate
market will implode the only question is when, my bet is winter 2007\2008.

John Fernandez, London, UK

That was very well thought out Geevna, what do you suppose will happen to the the thousands of homeowners that will lose their home as a result of this 'crash'?

Dave, Worthing, West Sussex

Don,
That's maybe true for you. At the first sign of a crash I - and all the sensible people - will just postpone our house purchase.... waiting until the market has bottomed out.
Geevna,
well said ... waiting for the crash!!

Michele, Richmond, Surrey

"There are too many people waiting and watching for the crash to materialize !"

No-one catches a falling knife, and if you think the current lending boom has anything to do with supply and demand, then why haven't rents gone up?

If it smells like speculation, looks like speculation, sounds like speculation, well then it's supply and demand, right?

Paul, London,

We don't need a crash as this will hit those who are mortgaged to the hilt to get a property - one day Geevna this might include you. We need to stop the rapid population rise and equalise the supply and demand to stop this continuous price boom and bust.

David Thijm, Stourbridge, UK

Thats not going to happen, since at the very first signs of a crash, people like us would try to jump in, keeping the prices high.

There are too many people waiting and watching for the crash to materialize !

Don, London, London

bravo, geevna! well said. it's long overdue in my opinion,

gavin, London, UK

Good. we need a crash to come now.

geevna, Birmingham, UK