One of the largest banks in England has said that they’ve seen 0.9% decrease in house prices, with higher expected falls in Wales and the West Midlands. Economists have long said that house prices will, eventually, fall. House prices were due to drop, but they couldn’t have started to at a worse time.

The fall in house prices is due to two things: One, the banks aren’t lending any money out so no one is able to buy a new mortgage, and two, the recent movement of large firms such as Yahoo has lowered employment so people are simply having to stay where they are. There’s a simple solution to all of these problems, force the banks to lend money. Forcing the banks to lend money would, of course, help mortgage lending: it won’t help the government pick up any brownie points, but who cares. Personally I think banks should be forced to give out loans at the previous rates, fair or not fair?