Last updated 11:47, Thursday, 28 August 2008

Our national obsession with home ownership as symbol of security, status and savings is taking a severe hit as UK house prices fall.

In the biggest dip since 1990, prices have slumped by more than 10 per cent in a year, knocking £20,000 off the value of the average home.

For the fixated with property as a measure of wellbeing, the forecast remains gloomy. Builders predict the market will remain subdued for some time yet. Banks and building societies offer few glimmers of hope for better news anytime soon, since properties languishing on agents' books will continue to act as a dampener to growth.

We can argue until the cows come home about where fault lies for householders’ broken dreams. But in the cold light of credit squeezing we’re bound to admit we’d long had sneaking suspicions the fragile bubble of easy money for bricks and mortar was bound to burst.

Tough markets have forced a levelling. Nervous lenders have had to rethink responsibilities to borrowers and speculators who bought for profit are realising the risks in a gamble.

Repossession rates tell us priority has to shift from fears for paper property values to securing affordable homes for people too long excluded from membership of a money-spinning ownership club – people now paying the highest price for national obsession with artificially high values.