The news about falling house prices will not be perceived as totally bad news as the majority have bemoaned the unsustainability of the increases in recent years. Yet given the importance of this asset (yes it stopped being just a 'home' some time ago it seems) the government clearly needs to act so the bump is not too painful.
Of course we are suffering from the global nature of modern capitalism and yet again I suspect the rules for the financiers will be adjusted to ensure their ongoing health.
So where are we know?. Well even with current adjustments I asume house prices only return to the levels of early 2000's but it is the tightening on the availability of finance that hits confidence.
Gordon needs to bring his massive knowledge to help meet this challenge but I suspect there are no 'UK alone' solutions.