Never knowingly beaten to a gloomy headline, Capital Economics chose Nationwide Index day to hammer home a bearish house price forecast with the assertion that we're to lose the equivalent of an average salary off the value of our homes between now and the end of next year. That's a 5% fall this year, and a 10% one in 2011... adding up to £23,000 on a property worth £163,500. Any increase in interest rates, combined with a tightening of credit conditions, will be enough - CE's Ed Stansfield argue - to throw us into an even worse house price crash. He points out, quite rightly, that the recent rebound in property prices lacked a firm foundation. More here.

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