Let them drop. Buy-to Letter's created a false economy that many normal people are now paying for. They enjoyed the fruit when the going is good. Now it's bad they should be repossesed or taxed higher. Can't believe they don't pay higher especially as it can increase income by £15k per annum.

Sunny, Coventry,

The recent boom was bigger and more out of control than any other, largely due to incorrectly set interest rates since 9/11. The government and the MPC have quite simply failed to learn from history and the last boom/bust wasn't that long ago either...

cww, Ipswich,

The average property is now worth £161797 not £167797.

Graham, Le Pechereau , France

So long as they continue to fall, to about 60% of current prices, we may finally enter the realm of affordability for first time buyers, particularly those in 'highly paid' service jobs such as teaching, nursing and the like.

Farrukh, Woking,

With so few sales these stats surely have limited value? This may even make the falls look insignificant considering the likely nature of the sales in the period. Responsible reporting should make more of this fact. When credit frees up, inflation & rates heads down, this may change the situation.

Simon, Leeds, UK

Only people who bought their houses in the past three years are looking at a loss. My house is not an investment but a place to live, and I want my children to be able to afford to buy a house in the same way. As to the equity release and 125% mortgage idiots - they took a stupid risk so, tough.

Sue, Sheffield, UK

It's just not true to say the house market collapse was not predictable. As a conveyancer it was to me obvious for several years many buyers couldn't afford the properties they were buying. Neither party had anything sensible to say about it except a few individuals (eg Vince Cable, Will Hutton)

Andrew G, London, Uk

In 2005 prices were already 20% over valued according to many commentators. We are back to 2006 now. We will be back to 2005 in another 6 months and then back to 2003 before long. Thank god for that, the kids might be able to leave home at last.

Chris , Chipping Norton,

How can a 12% fall be described as 'plummeting'?
This is only equivalent to part of the rise in the previous year and we know that government and the bank of england wanted prices to fall.But lets make a crisis out of it shall we?

colin grant, Montreal, Canada

Goverments around the world need to do something global house prices because millions of people are or will be trapped in negative equity and face repossesion as interest rates rise as they will have to due to inflation and govt desire attract capital to plug the funding gap. Housing market is key

Rupert, London, UK

Maybe now first time buyers will be able to afford properties at reasonable not ridiculous prices.

RK, London,

Why are people not being taxed more for second homes, most of which are in rural areas and in villages which are now deserted 50 weeks of the year?
If this situation was addressed, it would pretty much free up 94,000 homes instantly.

rebecca, bristol,

House prices have doubled since 2000, so a halving would bring us back to reality (just).
Banks should offer 50% rental buyback in the short term to avoid first timers being reposessed.
Property speculators, agents, or those who lied about their incomes should, I`m afraid, face the consequencies.

Darius Midwinter, London,

"astonishing and unpredictable developments in the housing and financial markets"

Is this really the Chief Economist of a bank ? 100% - 120% mortgages. Record house price to wage ratios. Dont you guys have graphs and computers ? Dont you have records from 1990 ? Next up its the keys hand back.

Michael S, London, UK

When's Kirsty going to eat her hat?

alan, st anne, Alderney

We need to see domestic purchasers, not investors, given priority now.

John, Colchester,