According to the Royal Institution of Chartered Surveyors, house prices are falling as quickly today as they did in the crash of the early 1990's and only interest rate cuts will avoid a property meltdown.
There are more estate agents reporting falling house prices now than at any time since 1992. Of the 500 polled, more than 60% said they had experienced falling house prices over the last quarter. Rics spokesman Ian Perry said: 'The Bank of England may have to cut rates further if the market is to remain stable.'
The Bank of England cut rates in December by 0.25% to 5.5%, but held the base rate at 5.5% this month.
Home Information Packs were blamed by most estate agents for the problems in the housing market. All sellers must buy a pack, which deters many of them from putting their home on the market just to 'test the water'.
Before the introduction of HIPs, many homeowners advertised their house for sale with no intention of selling, but were persuaded by a good offer.
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