Interest rates are set to be as low as 2% by this time  next year. Is it enough to save the declining property market? Probabably not as todays 4.5% rate is the equivalent of the heady 15% rates of the eighties according to some experts.

The financial market meltdown is is causing a major headache for the Bank of England. In order to avoid the evil of high inflation, interest rates have been kept relatively high. To keep the housing and property markets afloat, rates will need to be as low as 2 percent to avoid drastic house price falls. Even then, its probably too little too late because the rot will have set in the general economy.

Rising unemployment, reducing consumer spend and a lack of mortgage availablity in the first time buyers market, all will contribute to your house price falling around 30%. Those people hanging on to the idealogy of stabilising prices are about as out of touch as Gordon Brown. (Remember him? The boom and bust days are over is one of his infamous quotes.)

The real problem lies in that property has been over valued over recent years due to the "voodoo economics" in the money markets. Providing too much credit that was basically unsecured fuelled a property boom and rise in prices that was unrealistic to earnings and savings.

Be prepared for continuing house price falls until the credit crunch and recession is over regardless of low interest rates. The rate fall came too late to save an over inflated property market.

Then we can start to make the same mistakes again as we never learn.