An unseen factor is the number of owners who bought homes abroad on remortgagedUK property. Spain's market has collapsed. Many baby boomers planned to sell their UK properties in a few years, increasing market supply, and move abroad with a bundle of cash to live on. Something has to give there.

David Hall, Bangkok, Thailand

Six months ago the Times was full of contributors saying a housing downturn couldn't possibly happen in the UK, as we are not the USA.

With the "buy to let" frenzy of the last few years we are likely to see far more selling of property, as owners reach the point of no return.

Ian, Madison, USA

The diffwerence between Housing and Fodd and clothing, is , you can rent housing, its a little tricky to rent food or clothing(unless Black Tie or Fancy Dress), so expensive house prices doesn't mean more people on the streets, it just means more have to rent, like in France and Germany.

Stuart, Romford, England

Vested interests are admitting that we are going to have a correction. That means you need to at least double their estimate to get the real figures. In parts of Fulham asking prices have risen by about 60% in the last 2yrs & City boys are putting their houses on the market. Who's going to buy?

Greg, London, England

its amazing that the banks hve stopped lending more money to people that they would ever be able to afford to repay. Its even more amazing that it was allowed to happe in the first place. And truly astounding that commentators are now surprised that this 'rationing' is occurring.

AndyB, Swindon,

Come on and smell the coffee. The banks know that property prices are set to free fall and they are protecting themselves. Do not consider buying untill the banks open up on lending again, because untill that happens we have not reached the bottom. It will not be a mere 15% thats for sure.

David Louis, Coventry, UK

I offer this sentence "During the preceding boom, credit expansion had caused an unsustainably high rise in living standards and the propaganda about a “new era” created the idea that this standard was some sort of divine right" This came from an analysis of the 1920s and the Great Depression.

Peter Baker , Fareham , Hampshire

It's very good news that prices are falling. It's bad to have expensive property just like it's bad to have expensive other things. Having a roof over your head is essential, just like buying food and clothes. Lower prices are a very good thing and hopefully they will fall 50% more.

Jake, Oxford, UK

This is not a "mortgage rationing shock"

The mortgage market is simply resuming a normal service.

The last 5 years of overlending was the blip.

Jin, London,

It is amazing that people will pick the statistics that they want to provide evidence of their views. The reasons for repossessions are the same as in the 1990s and now. If you cannot pay your mortgage bill, they house will be repossessed.Repossession in large numbers=price falls or stagnant markets

Bob, London, UK

This article contains so many errors it's hardly worth commenting on, except to say that they bleat on about a recovery soon, but with only half the LTV loan available now, say, 3 times wages instead of 6 or more, nobody can afford the prices at these dizzy heights. The maths will drive prices down.

Np, England, UK

This is great news. The sooner property prices are down between 30-50% the sooner people can buy, have families and live there lives.

I hope the days of rampant property speculation and the society destroying buy to let brigade are gone forever.

Gavin, London,

What David calls rationins shock is simply banks lending at more sensible loan-to-values, and requesting a perfectly logical, sensible and prudent 20% deposit... as it should have been in the past and - i am afraid to disappoint the cheerleaders - it will be for a long long time!

Roger, Ealing,

"2008 “is not 1990”. The boom has not been as powerful as then" On the contrary, property prices as a ratio to average earnings are hugely greater then in the 90's. So too is the level of mortgage debt as a ratio to average earnings.
This crash will be much greater than that in the 90's.

Allan, Inverness,