Gordon Brown is at risk of sending house prices plummeting into crisis if he pushes through plans to build three million new homes by 2020, an economist claims. Financial Times, Daily Telegraph

Professor Daniel Bernhofen, an economics expert at the Globalisation and Economic Policy Centre, said the proposals to provide much-needed homes should have come sooner, and would now serve only to send house prices falling even further than anticipated – risking a similar downturn to that experienced in the US.

US house prices have suffered their worst plunge for 20 years as defaults on mortgages have risen.