Recent figures suggest annual house prices in the UK have slumped by 15%. However, these statistics may underestimate the true level of house prices.

The low volume of house price sales is indicative of the fact many homeowners are reluctant to cut prices to more realistic levels. Therefore, asking prices are inaccurate guide to the value buyers are putting on house prices. Many homeonwners are finding that only significant discounts from the asking price are helping to sell houses.

The deteriorating economic outlook means that interest rates are likely to fall in the near future. The question is how much rates will fall. Many are hoping for large cuts of 100 basis points. See: Outlook for interest rate cuts

When will the House price slump end?

With the economy experiencing a serious recession and banks still reluctant to lend mortgages, the fundamentals of the housing market point to further falls in house prices. Despite government attempts to help the housing market, it remains powerless to prevent house price falls. - Why government can’t prevent house price falls

Measures to help housing market at BBC