There won'#t be a crash like there was in 89 / 90 but I suspect alot of silly people who borrowed 5 or 6 times their salary to buy an overinflated property price wise and were just about able to afford the mortgage back then are going to end up in alot of trouble. Prices will drop, but don't expect them to crash as I very much doubt they will. Mortgages are also alot harder to come by now as opposed to 3 months ago, as lenders have changed their tactics so as to be almost unrecognisable from the start of the year. The days of minimal deposts, as much as you want at a rock bottom rate are well and truly gone. The way the regulators are talking now I don't see they'll ever be back as this whole credit crunch has arisen out of the banks greediness, and rules will be brought in now to ensure this never happens again I suspect, both in the UK and the US.