UK House Prices will Fall for as Long as Unemployment Rises
"Almost everyone seems to have developed the belief that a further 10% will be enough for the UK housing market to hit rock bottom. This will mean a 26.5% drop from peak if you go by the current Land-Registry index, and 30 - 35% if you go by some of the other indexes floating around. Several reports have recently either forecast and/or said that this recession will be/is equal to or worse than the great depression of the 1930s.
This is undoubtedly based on the last recession/house price crash between the late 80s to early 90s, when the average house price fell 28% from peak to trough. But this recession is to be worse and there is no mystical floor when it comes to house prices. It is more likely that prices will continue to fall for as long as unemployment rises; for however long that maybe and to whatever percentage that fall is."