U.K. home prices in May register biggest drop in 15 years

"We've got this double-whammy acting on housing prices now, so it doesn't look too good for home prices, near-term," Chandler said. "Demand is weakening and lenders are increasing mortgage approval requirements. Clearly that means we won't see the robust demand we saw for about four years, which suggests an extended down cycle, much like in America."

Further, although Chandler doesn't expect U.K. foreclosure rates to rival U.S. foreclosure rates during the U.K.'s down cycle, due to the lower percentage of investor-based, speculative residential properties in the U.K., but average and median home price declines may end up rivaling the U.S.'s, he said, due to what he called "a housing frenzy" that gripped Britain earlier in the decade.

"It seemed that everyone 'discovered' the benefits of home ownership in about a five-year period," Chandler said. "Price increases in some neighborhoods were really quite extraordinary, and almost everyone realized that they couldn't possibly maintain the feverish pace."

Chandler, who as a husband and father of two grade-school children is also in the market for a house, notes the example of neighborhoods in the Swindon – Bristol area, about 100-120 miles west of London. Home prices in several neighborhoods he's sampled in these locales are decreasing at the rate of $1,500-$2,500 per month, "strong evidence of a pronounced housing slump," he said.