House prices set to fall: About time!!

'Secret' cabinet briefing notes have shown that "at best" UK house prices could fall by 5-10%. As the market has been over-priced for years, but people have continued to buy into the myth that the prices will continue to rise at an exorbitant rate, I have little sympathy for those who have bought beyond their means. People have been over-stretching themselves for years trying to get a better house because, in the words of L'Oreal, they are worth it. But the houses weren't, and some people may get stuck with negative equity. Boo hoo.

Using historical data from the Nationwide you can see how out of hand things have been getting:

Personally my concern is not that the house prices will fall, but that they won't fall far enough. 5-10% is hardly worth getting excited about. Whilst there will be calls for panic in the right wing press, and the Conservatives will blame the government, it is nice to see that BBC research found more people want the prices to fall than rise.