No, I lost 25% of the value of my first property after buying at the peak in the eighties. Prices can fall and sometimes the government can't or won't stop it.
Sure, it's not impossible, but there's a powerful alliance of political and economic forces that will do their utmost to prevent this from happening.
I can only see three scenarios where prices fall materially:
a) big interest rate hike (I believe this caused the 89 crash)
b) massive increase in homebuilding (250k+ p/a, sustained)
c) mass emigration out of the UK.
I really doubt a) will happen, the BOE is loathe to raise rates as our household debt is 90% of GDP, twice what it was in 1990, our economy wouldn't handle it, our banks would be insolvent as they have <5% capital. Inflation would need to be double digits before the BOE's hand is forced.
b) also very unlikely. Homeowners make up the biggest voting block, a huge vested interest group. The green belt is a sacred cow. Every time the govt hints at liberalising the planning system, the mail+telegraph kick up a 'hands off our land' campaign.
c) maybe if brexit goes really badly, but we'd be in a true economic catastrophe if this happens. Probably wouldn't have a job with which to pay for cheaper housing.
