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Where does negative equity apply to the equation, Ray and Peter?
What's CPGB?
There is a key to house price valuations, so that a property is worth what it's really worth, although the State would have to adjust many already-existing mortgages and at the same time compensate the banks/lending-institutions for potential losses.
However, a start has to be made. Otherwise people will just continue buying houses that are artificially over-valued, being indebted with over-bloated mortgages, and that would mean continuing to cripple society.
Every ten thousands pounds too much spent on purchasing a house is ten thousands pounds less spent elsewhere in the economy.
The banks would not be negatively effected if people paid the proper price for a house, in other words 50%+ less, because the other 50% they'd still spend, or save, and that money will always be circulating through the banks, because money in circulation always ends up in banks, before being drawn again.
In fact, if people paid the proper price for houses and for rent, so much more money would be available for other sectors of the economy, which would, as a result, prosper.