I wonder how the Howard Holdings figures for their proposed re-development of the Pavilion site will be revised in view of the release of news that UK house prices could fall at best by 5-10 per cent this year.

A drop of 10 per cent would knock more than £20,000 off the value of the average house.

Secret Cabinet briefing notes accidentally revealed by a housing minister pointed out that leading house price indicators were predicting reductions for the first time in recent years.

The notes also revealed that the market was being affected by the global credit crunch, making it difficult for many who would like to buy to do so.

We can't know how bad it will get, but we need to plan now to put in place effective measures against the risk that it does get worse.

Does this mean that all the HH calculations are not as valid as when they were first made and that should they be awarded the go-ahead, there will be u-turns due to unavoidable circumstances'.

Presumably all their proposals are based on what they thought they could sell the flats for and not on what may now be realistic prices due to the reduction in the availability of mortgage funds.

This could either mean a reduction in the projected profits or a reduction in the 'freebies' being offered by HH to ensure that they get the contract.

Terry Fowler, Chalbury Close, Weymouth.