Attempting to re-inflate a housing bubble that occured through irresponsible lending ( mortgages of 6x salary) is utter madness. The hole this inept Government is creating for itself just gets bigger and bigger. A crash is inevitable, and is needed. Dont buy now is my advice to any 1st time buyer!

sophie smith, london, uk

How about, increased salaries and less tax?

Ah ,thought so. Well, never mind.

ronnie, bucks, uk

A service based economy such as the UK needs earned cash to circulate as quickly as possible. Instead it has been tied up in the excess prices for non productive assets such as houses.
It is therefore in the BoE’s interests to make houses as cheap as possible ASAP and prevent future speculation

rick, melbourne,

It is indeed a technical correction for the prices to fall, however it is unlikely that there will be any further very big price fall but certainly sentiment and recession will play its part and prices will fall. Mortgages must be made accessable and hi-tech manufacturing & export must improve.

Sidhaartha, London, UK

Of Course there will be an industry. When land for building gets back to the right price for building and people are not so greedy. Builders will see profits without enormous risk and will start building again. To many people trying to get rich quick ruined developing for the moment.

John Moore, Gaudonville, France

There should be no government inteference whatsoever in the housing market. There was none when prices were rising at ridiculous credit-driven levels, there should be none now that prices are falling. The mortgage lenders created this mess, they, not the taxpayers, must bear the consequences.

Paul, Coventry,

The assumption that all will be well of course being that whatever action is taken will actually work. Will it work as well as the current US solution, or as well as the one in Japan in the 1990s to now:)

Trevor, South east,

Clearly it hasn't occured to the CML that securitisation of mortgages was a primary cause of the credit bubble and that their disappearance should be celebrated rather than mourned. Why try to revive markets which were so much part of the problem?

Michael Holmes, Edinburgh, Scotland

We have a global inflation problem. Oil isn't at ten dollars any more like it was a decade ago. The economy needs to slow. We need to get ourselves off this housing/credit fix which is damaging and unproductive and train our economy to produce and export new technologies that can save energy.

James, London,

Yet again - high house prices are a BAD thing. That's what caused all this. When will we learn? Better a short sharp return to sustainability than forever trying to inflate the bubble.

Bob Jones, London,

As a first time buyer I will now wait till after the Autumn to buy in the hope they will scrap the stamp duty for us. It is totally unfair that we in London have to pay stamp duty on the cheapest property unlike other parts of the country. I'm also expecting even bigger house price falls then.

Gavin, London,

Why would anyone buy now who has to pay stamp duty?Surely they will wait until the autumn as there maybe a stamp duty holiday.I bough in the stamp duty holiday in 1992 which was announced by Norman Lamont and saved £600.

stephen hulton, eure, france

The proposal seems to be that taxpayers buy each mortgage from the banks as they make them. Effectively it's nationalisation of the mortgage markets. This seems not just risky but insane when house prices are falling.

Banks should rely on depositors to make mortgages and raise savings rates.

Michael Holmes, Edinburgh, Scotland

How is it that the BoE could underwrite new mortgages without any risk to the taxpayer? It is complete nonsense for the CML to suggest this. It is about time the CML woke up and smelled the coffee. Lending is constrained because anyone with a grain of sense knows that property is falling in value.

Simon, London, UK