Mr Bootle also forecast that house prices would continue to fall throughout 2009 with an overall housing market correction of between 40-45%. But he indicated the biggest fall would come from residential land values, which he forecasted to fall by around 70%.
On a positive note the current market correction will have a long term affect on the growth of house prices and help affordability in relation to average earnings.
However, Mr Bootle indicated that this would need to be mitigated against poor access to finance and some of the people for whom home ownership was never suitable in the first place. Mr Bootle warned that the country was in the biggest housing bubble ever seen and there was a long way to go before the market stabilised.
In a challenging speech Mr Bootle also suggested that the "culture of homeownership" was "part of the problem, not the solution" and the Government should stop "pandering to owner-occupation".
He said: "We can’t all get rich by buying and selling each other’s houses."
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