If you believe the National Association of Estate Agents, allowing house prices to dip can trigger (or worsen) a recession, because people spend if they feel wealthy, and they feel wealthy when they're homes are rising in value. We've always been of the opinion that the feel-rich, spend-more theory is overstated. What matters are jobs. The unemployed feel poor. They are poor. They lose their homes. Property values drop. MoneyWeek appears to be of that school of thought too. It's employment that will kill or cure the residential property market, not the other way around.

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