Ann in Sydney - You are too far from the action - as the FT reports today:
"There are worries that developers of blocks of flats are conspiring with investors to over-inflate prices using added incentives such as free fixtures to secure mortgages. Lenders are then forced to repossess the property and often have to sell it at discounts of up to 40%."

That apparently comforting 7% year on year rise in the price flats needs to be taken with a large pinch of happy powder - the real value (on the real market where the lenders flog the repos) is some 40% less!

In September 2006 a little followed index of Collateralised Debt Obligations (CDOs) showed slight falls - even among those that noticed there were many who dismissed it as a short term correction - that correction was the start of what has become known as the sub-prime crisis - these things take time (much like glaciers melting) - it is not scaremongering to highlight structural weaknesses in our housing market.

Father Ignatius Brown, London, UK

OK let's look at the facts without hype. The land registry data shows actual sales figures & volumes - a factual record of the market.

So, house prices remain stable at average +0.9% with a few bigger increases (+1.5% London in January if you read the full report on the Land Registry website). Overall sales volumes down by a just under 15% in the quarter Aug-Nov compared to same period period previous year.

That means.....what exactly? That just 15% of the volume of people who purchased near the top of the so called price-bubble are not buying near the bottom of the so-called price-bubble! and this supposedly in an environment with the fact that mortgage lenders are doing a massive clampdown on "fraudulant" mortages...So can you remind me where's the "bursting" price bubble again...can't see one myself in these numbers.

Things are certainly changing, but let's stick to facts not scare stories.

Ann, Sydney, Australia

Come on journalists - where's the critical analysis pointing out that the Land Registry figures are fatally flawed because so many new builds get sold with a bundle of incentives to inflate the price.

One leading developer is reportedly offering a package worth 25% of the property price - that means the Land Registry gets say a figure of £300k on its books but the real value of the actual property (minus snazzy kitchen, cash-backs, carpets and even cars) is just £225K.

That's why so many developers are reporting seriously squeezed margins in their financial results - shareholder equity is being burnt on maintaining the sales price illusion.

Without such smoke and mirrors in the new build sector that apparently comforting 4.4% rise since last January would disappear in a puff of repossession papers. We would be looking at substantial falls already. As it is the problem will only crystallise when the buyers come to sell and can't dress the deal up to the same extent.

Huw Sayer, Norwich, England

William, Avonbridge. Ever thought that it is the witless people who get themselves into such high debt that they have to work two jobs and have no time for anything else who have contributed to the current bubble? If you (and those like you) had refused to buy, then prices would have dropped to your benefit. Clara therefore gets my support, for not being stupid. As for your statement "I am not prepared to go into negative equity for people like you!!!" - what choice do you have? I'm not prepared to accept that my (free) Northern Rock shares are worth a fraction of their value a year ago - what do you suggest that I do about it? Perhaps an economics course would have been in order before you mortgaged your life away.

Clint, Stafford, UK

Steve, Reading, Berks. What you really mean is that in the past, property has tended to be a good bet in the long term. We are in a brave new world. This is the first time the UK has had so many property investors. In previous crashes homeowners have had to be dragged kicking and screaming from their properties. In contrast, investors will be rushing for the exit. Neither of us know what will happen this time, but you shouldn't rule out the possibility that the BTL craze could, when it all goes wrong, undermine UK property values for a very very long time to come. We'll just have to wait and see.

Clive, Chichester, UK

Steve in Reading "Money in property will always win in the long run" - what a ridiculous, un-economic statement - win against what for a start - and how long a run?

More importantly if you are talking about winning in investment terms then buying at the top of the market is crazy whatever the long term - since you could find more profitable lower risk investments elsewhere for the medium term.

People who bought property in Japan at the top of the last boom in 1989 are still nursing loses - that 15 years of wasted investment opportunity. People who bought in the UK at the top of the market in 1989 did not see their investment come back into profit until 2000/02 - again a huge wasted investment opportunity.

Father Ignatius Brown, London, UK

Many of us had to struggle to buy our first home, so Clara why should prices fall just so lazy people can get on the property ladder. When I had two jobs and no social life I certainly didn't complain about it. I am not prepared to go into negative equity for people like you!!!

William Black, Avonbridge, UK

The idea of homeowners celebrating a notional 2 % monthly rise in value is asinine and implies that houses can only be bought as an investment. While you like to jabber on as if this is the case I get the impression that there are still some people who buy a house for something to live in.

Neil McF, Southampton, England

I was told that if I voted Labour everything would be all right. I think it was Roy Partridge who said it. Roy also established the Labour voter voucher -- collected 10 and you get a free Labour vote at your local polling station. Vouchers available with Walkers crisps and Gangsters Cornish Pasties. No wonder Labour are still ahead in the polls.

Ron, Sheffield, UK

A rise in house prices is only cause to celebrate for those who actually own homes. For those of us unable to purchase our own (first) home because of ridiculous house prices, it's certainly no cause for joy.

Clara, Dorchester,

Money in property will always win in the long run, even those HPC website pessimists will agree at some stage!

Steve, Reading, Berks