" I can't afford a house. How do you need more help than me? "

Excellent remark summing up this vile situation of hyper inflated house prices and what exactly needs addressing.

Joe, Manchester,

Think positively! Less Spencer, Allsopp, Beeney, property ladder, loc loc loc, place in the sun, homes under the hammer, build a new life in the country, house auction, trading up, buy with a stranger, to buy or not to buy, up your street, put your money where your house is, escape to the country..

barry wiseman, bromley, kent

This situation has been totally manipulated by banks and government. When house prices drop as low as they want they'll start releasing cash again.

judy, Liverpool, England

UK only has one mass employer (besides HMG -bless em)
and thats house building . Which is why the government are so keen on "eco" towns.

Unfortunately, the Gordon Brown stuff has hit the wind turbine.

ronnie, bucks, UK

Ken

You know what? I can't afford a house. How do you need more help than me? You can sell. And if you have dumped yourself into negative equity, that's your own fault for taking too much risk, probably having more bedrooms than you needed (you would have 11 children to *need* 7 bedrooms)

David Slatter, Cambridge,

Oh dear, the housing market at its 'least active since the early 1990s'. Well I don't about the early 1990s, but the mid-1990s were pretty good, you could buy a 2-bedroomed starter home for under £35k and a three-bedroomed terraced house for about £40k. Bring it on, that is *real* affordability!

Paul, Coventry,

How about we try to avoid this in the future by attempting to export our way to a growing economy?

Of course that would mean having mid sized regional businesses being more appealing than the city and some good old fashioned targeted keynsian investment in skills by the government............

Jon, London,

Now look chaps, I know you think that we estate agents and merchant bankers caused this bubble in the first place by inflating prices and throwing piles of money at you but come on, a fellows got to live. I hope this soft government are going to help us out. I've got a 7 bedroom mansion and kids....

Ken, Cranfield, UK

No, Lawrence, that does not mean "a 60% drop [in prices] at the very least"!

Over the past 50 years house prices have risen at an average (nominal) rate of 8% a year. As such, they were 30% overvalued at the end of 2007. To get back to equilibrium, they need to fall by 14% over the next 2 years.

Max, London,

Does the 66% drop in approvals include the 50% drop in houses changing hands? Or is it a 66% drop in mortgage applications being approved?

hugo raworth, london,

Simon Rubinhson is talking nonsense when he says that the Bof E should reduce rates to assist first time buyers. House prices are falling which is the best way to assist first time buyers! If they reduce interest rates this could lessen any fall in house prices therefore hindering first time buyers.

Ryan David, Cardiff, Wales

I hope all first time buyers will join me in steering clear of the housing market until house prices are affordable once again. That means a 60% drop at the very least.

Lawrence, London, UK

Banks and other lenders always make the boom-and-bust cycle worse by overlending in the boom and underlending in the bust. Can we have a bit more rational behaviour, please, guys?

Frank Upton, Solihull,

It would be interesting to know the change in mortgage enquiries, particulary divided into enquiries for >90% and <90% mortgages. Since 90-100% mortgages were only a small part of lending, I suspect the drop in approvals has more to do with a lack of enquries (confidence) than rejected applications

Lucy, London,