Not only did many people see this coming, they discussed it openly on the forums dedicated to the subject. As many people also suggest, this is only just the start.

Adrian, orkney, UK

Yes this was a real surprise to me. Banks offering mortgages above 3.5 times earnings cannot go wrong. I hope both yours and Ms Ashworth's conscience is clear if any first time buyers followed your financially inept advice in the last 4 years.

andrew, Exeter, UK

"If you believe that a big, 10%-15% fall in house prices (which I don't expect) would take us back to the negative equity of the early 1990s, and leave banks with dodgy mortgage books, fine, but it is not true. " David Smith December 2007

Dr Ray, Hereford, UK

David Smith appears to live in a different world from me. The current housing bust was completely predictable. If house prices rise 200% in a decade when earnings only rise about 40% it's obvious that a bust is coming.

No that it's here lets rejoice as sanity returns to the markets.

Ian, Cambridge, UK

What do you think you should say to the first time homebuyer readers who listened to your advice over the last two years and did not to listen to us the 'doom mongers'.
They are now sitting in negative equity with a mortgage of 5/6 times earnings,thats if they keep their job.

marcus, ipswich, UK

David, why should anyone listen to you? For years you've been trying to convince the gullible that there was no housing bubble. You're now trying to re trace your steps. Speak for yourself. The smart money knew this was bound to happen. There should be a health warning attached to your column.

keith, london, uk

It's hard to believe this headline, when it was obvious that Britain had to follow the US, both in artificially prolonged boom (sustained by ballooning consumer debt) and overdue bust. How could house prices be sustained at a level where few new buyers could truly afford them?

Peter, Salisbury, England

Well that's a new definition of Everybody. Apparently it now means a Small Minority of Journalists Who Believe Govt Press Releases.

Anthony, Kew, UK

The speed and severity of downturn took me by surprise.
I was expecting it to fall over much sooner!
After years of ramping Gordonomics "end of boom and bust"
It turns out that only one word was wrong, and we got a standard "end of boom with bust".

Plus ca change, plus ce la meme chose...

Pat, Coromandel, NZ

What suprise? Plenty predicted this David, you just chose to ignore them.

Lenny, Coventry,

Look at the Nationwide chart of real prices over the last 30 years and the severity of this downturn is no surprise. The 2000-2007 boom looks like Mnt Everest compared to Ben Nevis (the last crash)

Extrapolating the long-term trend suggests a market bottom of < £100,000. This is only the start.

A Harris, Kettering, UK

Please, Mr Smith speak for yourself. Remember your blue sky economic forecasts, insistence on sound economic fundamentals and barbs at doomers and gloomers from the dark corners of the internet? Looks like trees don't grow to the sky after all, David.

anthony, london, england

The housing market has significantly overshot by the availabiliy of no-deposit 5X salary and 'liar morgages'. Its clear with the impositionof new rules and 10 to 20% deposit and 3X salary proven multiples it wil significantly undershoot. further 25% or 40% fall? its anyones guess.

john joseph, oxfprd, uk

The house price bubble was a typical pyramid scheme. It works as long as new people finance it with new money, often first-time buyers desperate to get on the housing ladder. However, for many that money will turn into negative equity, and that will keep off new potential victims for years to come.

Peter, Liverpool, UK