U.K. House Prices Fall the Most Since 1992

"U.K. house prices dropped by the most since 1992 in March as a global credit squeeze forced banks to roll back mortgage lending, adding to the case for a Bank of England interest-rate cut this week, a report by HBOS Plc showed."

"The average cost of a home in Britain fell 2.5 percent to 191,556 pounds (240.000 EUR) from February, the U.K.'s biggest mortgage lender said in a statement on the Regulatory News Service today."

As highlighted multiple times throughout this blog, the housing correction will come from the west and like a domino will ultimately reach the east with a time lag. (First the U.S. then U.K , Ireland and Spain etc...)

As the ECB had highlighted many time, Europe trade is higher and more important with U.K. then the U.S. So while the U.S is entering a recession, the ECB was not yet that alarmed but if the U.K does really enter a recession then "Houston, we have a problem"...