The Nationwide house price/earnings ratio is 4.4. The historical average is 3.4, which suggests that house prices will slide around a further 23% to reach the average.
The latest survey from the RICS show sales fell in August to their lowest levels in two years, with a slight increase in the rate of house price fall.
Both the Halifax and Nationwide also revealed the first monthly fall in house prices since April 2011.
Data from the FSA shows mortgage approvals in the second quarter were down 3% on a year ago and for new homes, mortgage approvals remain at less than half pre-credit-crunch levels.
With a worsening economic outlook, rising unemployment and wages falling 2% a year after adjusting for inflation, house prices are set to fall further.
