John Wriglesworth predicts possible fall in housing market.

Money Marketing cites economist John Wrigglesworth, who predicts that the UK housing market could fall by 50 per cent. He says that if lenders return to lending at
a multiple of three times income, then housing prices could drop by 50 per cent,
returning to their level of early 2000. This was when lending criteria began to
be loosened.
Wrigglesworth, who is managing director of Wrigglesworth Consultancy, says the British government has to inject £350bn into the mortgage market through the Bank of England special liquidity scheme. He considers the initial £50bn pretty paltry.
I suppose this is the time to batten down the hatches. The number of transactions has dropped sharply and I wonder what the government will do since it will want to go into the 2010 general election with a strong housing market to get that
"feelgood" factor.