BBC News - House price inflation eases again, says Nationwide (latest house price drop 0.5%) As someone who's not bought a house yet I've been watching the market for quite some time and have come to the conclusion that house prices will have to drop into line with achievable mortgages. I've argued with many people, who are homeowners and disagree with me that if the banks really have returned to responsible levels then an average person earning £25K will probably only get a mortgage of 4 times his/her salary with a deposit of 10-20%, and therefore can only buy a property worth a max of £120K. With average UK house prices around £167K then something somewhere will need to give - and I don't think it'll be the banks, nor should it as 100% mortgages and the like led us into an unsustainable housing boom in the first place.(and that total ****** Gorgon Broon!) So I guess my question is: is it me thats completely wrong or are homeowners and property developers being unrealistic at valuing properties at current levels? This is a genuine thirst for knowledge question as I believe unusually for me I'm right on this one and everyone else is wrong!