It should come as no surprise to anyone to learn that the fall in house prices last year of 15.9%, as per a survey by Nationwide, was the largest fall since they began keeping records in 1991.
Unsurprisingly house prices are predicted to continue to keep falling this year. The Times notes that Howard Archer, chief UK and European economist at IHS Global Insight, estimated that house prices will fall another 15% in 2009.
Whilst the MPC are expected to cut rates by at least 0.5% this week, the level of interest rates alone will not be enough to staunch the losses. Until credit is once more flowing freely, there will be no respite to the ongoing property collapse.