House Prices

If house prices do fall by 10% as has been suggested by the Ernst & Young ITEM Club, amongst many others, then that will constrain spending in the high street (especially as staple goods are increasing in price). It is the effect that this has on the economy as a whole that is crucial. If the economy does slow or worse, then Gordon Brown will be in real trouble. He is way too closely associated with the Treasury (obviously) and so cannot escape the criticism, especially as he was the man who had ended "boom and bust". That phrase in itself showed a lack of understanding of the economic cycle. More detail in the Sunday Times.

Personally I dont mind a hosue price decline. It may just let me get on the property ladder!