The reason for this is that people buying property in the £175,000 to £190,000 will try and beat the price down to below the threshold. Once this has happened, assuming that there is a chain as there is in most property transactions, then pressure will be put on throughout the chain in order to reduce prices and prevent the chain breaking down.
The end result may only be that the person at the top of the chain effectively gives a discount to the person at the bottom of the chain, assuming all prices come down by the same amount, but it will however reduce confidence throughout the market as prices fall again.
