Yes prices can come down. But just for perspective, the 2007 peak/crash in houseprices was a huge thing apparently. House prices in my street are at least 30% higher than then. If houseprices drop dramatically the country goes into meltdown, and nobody wants that, so there would be a pretty fast recovery. It's only really good if you have the money as a first time buyer/investor at the right time. Yes your ltv may go down but probably temporarily and you are paying it off all the time. The only real downer is if interest rates go skyrocketing AND the value of your house falls. Then you have to get a lodger