It's tempting to compare the current - so far small - decline in house prices with the financial crisis (as Radio 5 Live did this morning), but the start of the early 1990s recession may be closer to what's currently happening. The attached quote, from 2008, describing that earlier recession, rings several bells without even touching on the potential EU angle.
I've argued elsewhere that the best comparison to help understand the financial crisis may be the Long Depression of the 1873-96, and that it's important to look hard for the best comparisons rather than relying on the most recent. History may repeat itself but it's usually worth going further back than the last similar event.
Thinking about the early 90s, this might mean firms looking again at their prime mortgage books, and regulators checking the general resilience of the smaller, more specialist lenders. However the immediate future unfolds, it should be a valuable exercise.
debt levels had soared and house prices had ballooned, leaving consumers highly vulnerable to higher interest rates. When the blow came and house prices fell, not only in real terms but also in nominal terms for the first time since the war, the downturn was felt more severely by consumers, by the services sector and by the South.