The mortgage brokers and Estate Agents are making a complete ba**s-up with their projections this year,
Messrs Stansfield and Bootle at Capital Economics are making the right predictions percentage wise but they have been predicting the house price decline for about 4 years now.
The only way that this decline can be stopped short is by HMG taking more radical steps with the economy than they are already doing and planning. Only problem is that this could have disastrous effects on the rest of economy.
My guess is that the Government will stick with their current plans and wait for the general economy to recover first, the housing market (price) recovery generally follows 2 or 3 years after.
Mortgage Lending will probably improve by early next year but prices can still drop if the three times salary multiplier is going to be strictly enforced.
I cannot see too many FTB's having 30%+ deposits to turn this market around anytime soon.